The classical approach to macroeconomics assumes that
A. wages and prices adjust quickly to balance quantities supplied and demanded in markets.
B. prices, but not wages, adjust quickly to balance quantities supplied and demanded in markets.
C. neither wages nor prices adjust quickly to balance quantities supplied and demanded in markets.
D. wages, but not prices, adjust quickly to balance quantities supplied and demanded in markets.
Answer: A
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Nancy is considering forming a 5 year business partnership with Claudia. Nancy believes her portion of the partnership will generate the following profits:
Year Profits Present Value 1 $2,000 2 $4,000 3 $12,000 4 $15,000 5 $18,000 Nancy's appropriate discount rate is 6%. To join the partnership, Nancy needs to invest $30,000. Does the partnership offer a rate of return in excess of 6%?
What is the shape of the AS in the short run and the long run?
a. AS is relatively flat in both the short and long run. b. AS is relatively flat in the short run, but steeper in the long run. c. AS is relatively steep in both the short and long run. d. AS is relatively steep in the short run, but flatter in the long run.
The text discusses reason why the AD, SAS and LAS curves shift rightward overtime. If there is inflation, which curve shift rightward at a faster pace?
What will be an ideal response?
Of the following countries, which has the lowest level of income inequality?
A. Greece B. Japan C. Mexico D. Slovenia