The term "classical" refers to an economic theory which states that over a relatively short period of time, wages and prices will adjust quickly to bring the economy back to full employment
Indicate whether the statement is true or false
TRUE
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As of 2014, using real GDP per person as a measure, we would classify
a. the United States and Mexico as advanced economies and Bangladesh as a middle-income country. b. Canada as an advanced economy, Mexico as a middle-income country, and Pakistan as a poor country. c. Japan and India as advanced economies and Mexico as a poor country. d. Japan as an advanced economy, the United Kingdom as a middle-income country, and Argentina as a poor country.
Suppose Americans become concerned about saving for retirement and, as a result, reduce their current consumption expenditures. Which of the following would you expect to occur as a result of this change?
a. In the short run, unemployment will increase and inflation will fall. b. In the short run, unemployment will increase and inflation will rise. c. In the short run, unemployment will decrease and inflation will rise. d. In the short run, unemployment will decrease and inflation will fall.
The aggregate supply curve shows how much the nation’s businesses are willing and able to produce at each price level.
Answer the following statement true (T) or false (F)
What matters most during a bank run is:
A. the solvency of the bank. B. the liquidity of the bank. C. the number of loans outstanding. D. the size of the bank's assets.