The classical model
a. is another name for the short-run macro model
b. was developed to explain the long period of poor economic performance during the Great Depression
c. is an attempt to explain why the economy tends to perform rather well over long periods of time
d. is believed by most economists to be a better explanatory model for short-term, rather than long-term, economic performance
e. was not really accepted as a legitimate economic theory until the 1950s
C
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The way one unit of a firm relates to another in the same firm is referred to as being
A) upstream or downstream. B) latitudinal or longitudinal. C) left or right. D) competitor or conspirator.
If you were a rational expectations economist, you would argue that the goal for economic policy is to
a. discover the NAIRU and make sure the actual rate of unemployment doesn't fallbelow it b. discover a way to lower unemployment to two percent without inflation c. keep the inflation rate below 10 percent d. maintain inflation at 3 percent and unemployment at 4 percent e. maintain unemployment at 3 percent and inflation at 4 percent
A core belief of modern macroeconomics is that in the long run,
A) a change in money growth will affect the level of output, but not its composition. B) a change in money growth will affect the composition of output, but not its level. C) output can deviate permanently from its natural level. D) a change in fiscal policy will not affect the composition of output. E) greater saving will result in greater output.
School Board Voters' Ordered PreferencesDavidErnieFionaNew gymNew libraryNew computer labNew libraryNew computer labNew gymNew computer labNew gymNew libraryIf a pair-wise majority vote was held to determine which school project gets funded and the voters' preferences are shown in the table, if Ernie sets the agenda which option would he see was voted on first?
A. Computer lab and gym B. Library and lab C. Gym and library D. It doesn't matter which options are considered first.