Each of the following is consistent with the classical theory EXCEPT
A. wages and prices are flexible.
B. the economy is always at full employment.
C. supply creates its own demand.
D. laissez-faire.
B. the economy is always at full employment.
You might also like to view...
To lower the federal funds rate, the Fed conducts an open market ________ of securities which ________
A) purchase; increases the demand for reserves B) sale; increases the supply of reserves C) purchase; decreases the demand for reserves D) sale; increases the demand for reserves E) None of the above answers is correct.
Refer to Table 8-12. Consider the following data on nominal GDP and real GDP (values are in billions of dollars): The base year used in calculating real GDP is
A) 2013. B) 2014. C) 2015. D) 2016.
An oligopoly firm is similar to a monopolistically competitive firm in that
A) both operate in a market in which there are significant entry barriers. B) both firms face the prisoner's dilemma. C) both firms have market power. D) both firms are in industries characterized by interdependence of firms.
A person setting up automatic deductions through her employer so a portion of her pay goes into a "Christmas account" is an example of:
A. status quo bias. B. the endowment effect. C. positive framing. D. a commitment device.