One key assumption of the classical model is
A) government spending plays a major role.
B) money illusion cannot fool workers.
C) wages are sticky.
D) prices are sticky.
B
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A ________ describes the possible moves in a game in sequence and lists the payoffs to each possible combination of moves.
A. game graph B. multi-period game C. payoff matrix D. decision tree
In a market with positive externalities, the market equilibrium quantity will be less than the efficient equilibrium quantity
Indicate whether the statement is true or false
On the graph above, the amount of inventory depletion will be greatest if the economy is moving from point ________ to point ________
A) A; D B) D; A C) D; C D) B; A E) B; C
According to the simple quantity theory of money, a change in the money supply of 9.6 percent would lead to a
a. 9.6 percent change in velocity. b. 9.6 percent change in real GDP. c. 9.6 percent change in nominal GDP. d. 9.6 percent change in aggregate supply.