Classical economists believe aggregate spending adjusts quickly to equal full-employment output.
Answer the following statement true (T) or false (F)
True
The classical view holds that no government intervention in the market is needed because the price level, wages, and interest rates will adjust and the economy will self-correct to restore full employment.
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If you want to test, using a 5% significance level, whether or not a specific slope coefficient is equal to one, then you should
A) subtract 1 from the estimated coefficient, divide the difference by the standard error, and check if the resulting ratio is larger than 1.96. B) add and subtract 1.96 from the slope and check if that interval includes 1. C) see if the slope coefficient is between 0.95 and 1.05. D) check if the adjusted R2 is close to 1.
Which of the following modern methods of financing a corporation was not available to corporations four hundred years ago?
A) selling stock B) selling bonds C) reinvestment. D) All of these methods were used then as well as now.
Barriers to entry into a market could include all of the following, except one. Which is the exception?
a. government restrictions b. brand loyalty c. large marginal costs d. licensing fees e. large fixed costs
A $0.10 tax levied on the sellers of chocolate bars will cause the
a. supply curve for chocolate bars to shift down by $0.10. b. supply curve for chocolate bars to shift up by $0.10. c. demand curve for chocolate bars to shift down by $0.10. d. demand curve for chocolate bars to shift up by $0.10.