What key observation did the classical model attempt to explain?
a. the economy performs well in the short run, but not so well in the long run
b. business cycles are the most important economic problem
c. over the short run, the economy performs rather poorly
d. markets do not clear without government intervention
e. over the long run, the economy performs rather well
E
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A monopolistically competitive firm is like a perfectly competitive firm insofar as
A) both face perfectly elastic demand. B) both make an economic profit in the long run. C) both have MR curves that lie below their demand curves. D) both make zero economic profit in the long run.
Collaterized debt obligation CDO
What will be an ideal response?
In games, the strategy to reach a particular goal:
A. has begun to be documented by economists. B. should be similar to what others have chosen to reach the same goal. C. is the same for everyone. D. can be different for different players and still achieve the same goal.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, Point A necessarily represents
A. only hybrid cars being produced. B. an unattainable production point. C. what society wants. D. the economy's optimal production point.