The new classical school holds that:
a. macroeconomic equilibrium is achieved only through active government intervention.
b. unemployment is only temporary, because the economy tends naturally toward equilibrium.
c. rigid prices and wages prevent the economy from achieving equilibrium.
d. macroeconomic equilibrium cannot occur as long as the aggregate supply curve isvertical
e. rational expectations result in involuntary unemployment and prolonged periods of macroeconomic disequilibrium.
b
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Sue owns a baking company. The company's total revenue for a month is $4000. The monthly costs of resources bought in the market and of resources owned by the firm are $2000 and monthly costs of resources supplied by the owner are $1000
Sue's economic profit for the month is equal to A) $4000. B) $3000. C) $2000. D) $1000.
A monopolistic competitor does not earn profits in the long run unless it can successfully differentiate its product in the minds of its consumers
Indicate whether the statement is true or false
Since it does not have to be converted into anything else to make purchases, ________ is the most liquid asset
A) money B) stock C) artwork D) gold
Reservation price is: a. the maximum amount a customer would be willing to pay for a unit of output. b. the minimum price at which a seller would be willing to supply the product. c. always equal to the marginal cost
d. the same as market price.