1) "I cut production not because costs were too high, but because demand was too weak." "I cut production not because demand was too weak, but because costs were too high." Which statement best reflects the Keynesian view of national income determination?
2) The creation of unwanted inventories or the depletion of wanted inventories signals coming changes in the level of national income. Explain.
3) Professor Arvind Jaggi asks his students at Franklin and Marshall College: "Building schools is not only good for students but for many non-students as well." Who are these nonstudents? Explain why they benefit.