Classical economists believed that
a. the government should play an active role in controlling the economy
b. the government can best help the economy by leaving it alone
c. the economy is controlled by the government
d. laissez faire will hurt the economy
e. economists should offer guidance to governmental leaders
B
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Jim saw a decrease in the quantity demanded for his firm’s product from 8000 to 4000 units a week when he raised the price of the product from $200 to $250. What is Jim’s own price elasticity of demand?
A currency has depreciated when:
A. that currency buys less foreign goods than it did previously. B. that currency buys more foreign goods than it did previously. C. one unit of that currency buys more units of a foreign currency than it did previously. D. foreign goods become cheaper to holders of that currency.
Which of the following most accurately summarizes the implications of an economy's production possibilities curve?
A. If all the resources of an economy are being used efficiently, more of one good can be produced only if less of another good is produced. B. If all the resources of an economy are being used efficiently, it is generally possible to produce more of one good without having to sacrifice the production of other goods. C. Over time, it is generally impossible for a country to expand its production of goods. D. An economy will automatically move toward a point that lies outside of the production possibilities constraint unless proper government policy constrains production.
What is the definition of the output gap?
What will be an ideal response?