The classical model assumes that
A. people have money illusion.
B. wages and prices are flexible.
C. wages are flexible but prices are not.
D. imperfect competition predominates in most markets.
Answer: B
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Which of the following is not a result of a U.S. tariff on foreign autos?
a. increase the price of imported autos b. increase the price of domestic autos c. decrease the quantity of foreign autos purchased by U.S. consumers d. decrease the quantity of domestic autos purchased by U.S. consumers
The nominal GDP of a country is 13.4 percent higher than its real GDP. The value of the GDP deflator of the country is equal to _____
a. 134.0 b. 113.4 c. 130.4 d. 103.4
Terry buys 10 pounds of cheese and 12 boxes of crackers each month. A pound of cheese costs $5 and a box of crackers costs $3. If she is maximizing her utility, what is her monthly income?
B. $90 C. $80 D. There is not enough information to determine her monthly income.
According to the textbook, L. Frank Baum, the author of The Wonderful Wizard of Oz, blamed ____________________ for the economic depression of 1893 and the related hardships faced by farmers and workers
A) the gold standard B) the silver standard C) a massive tornado D) high taxes