The Simple Keynesian Model Assumes That

question 347

Multiple Choice

The simple Keynesian model assumes that

• A) gross private domestic investment exceeds net investment by the capital consumption allowance.
• B) prices, especially the price of wages, are "sticky downward."
• C) there will never be any excess capacity in the short run.
• D) aggregate demand will always equal aggregate supply.

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Definitions:

Herfindahl Index

A measure of market concentration that squares the market share of each firm within an industry to estimate the industry's competitive landscape.

Big Three

A term typically used to refer to the three dominant firms in a specific industry or sector, often used to describe the top auto manufacturers in the United States.

Big Four

A term often referring to the four largest professional services networks in the world, offering audit, assurance, tax, consulting, advisory, actuarial, corporate finance, and legal services.

Autos

Short for automobiles, referring to vehicles that operate independently without human push or pull, primarily cars and trucks used for transportation.