The pre-Keynesian or classical economic theory predicted that in the long-run the economy would ...

The pre-Keynesian or classical economic theory predicted that in the long-run the economy would experience:
 a. long periods of high unemployment.
  b. rising rates of inflation.
  c. only temporary periods of high unemployment.
  d. idle factors of production.

QUESTION 2

Fixed investment refers to investment in stocks, bonds, and improvements to land.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 3

To illustrate the classical argument that supply creates its own demand, the aggregate supply curve should be drawn:
 a. downward-sloping.
  b. upward-sloping.
  c. horizontal.
  d. vertical.

QUESTION 4

Intermediate goods are included and final goods are not included in calculating gross domestic product.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 5

The aggregate supply curve reflects the relationship between the price:
 a. of a particular good and the quantity supplied by all firms producing that good.
  b. of a particular good and the quantity supplied by the aggregate economy.
  c. level and the quantity supplied of all goods in the economy.
  d. level and the quantity of all goods purchased in the economy.