A classical model of the economy predicts
A. a negative unemployment rate whenever the economy is in equilibrium.
B. full employment in the long run.
C. cyclical changes in the unemployment rate.
D. the same unemployment rates as the Keynesian model.
Answer: B
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If an economy has no money, then all transactions must be conducted through the use of ________
A) credit cards B) barter C) debit cards D) tobacco or wampum
A monopsonist's marginal factor cost (MFC) curve lies above its supply curve because the firm must:
a. lower the product price to sell more. b. increase the price of its product to sell more. c. decrease the factor price to hire more. d. lower the factor price to hire more. e. none of these.
Government purchases have the same multiplier effect as business investment spending
a. True b. False Indicate whether the statement is true or false
Some suggest that many New York taxi drivers set an income goal for the week and finish work once they have achieved that goal. If this is true, on busy days when the effective hourly wage is higher, taxi drivers will:
A. work the same number of hours as they will on slower days. B. work fewer hours than they will on slower days. C. not work any hours. D. work more hours than they will on slower days.