Classical economists believed that
A. if saving exceeded investment, prices and interest rates would rise as business accumulated unwanted inventories.
B. flexible prices and wages could not restore an economy to full employment if the interest rate were rigid.
C. flexible interest rates, wages, and prices would assure full employment.
D. voluntary unemployment reflected economic inefficiency.
C. flexible interest rates, wages, and prices would assure full employment.
You might also like to view...
Margin calls are more likely to happen when markets are:
A. crashing. B. booming. C. stable. D. irrational.
An increase in the price of the good measured on the horizontal axis of a budget line diagram will
a. make the budget line flatter b. make the budget line steeper c. leave the budget line unchanged d. cause a parallel inward shift of the budget line e. cause a parallel outward shift of the budget line
Schleppsi, a soft drink maker, is a monopsonist in the county where it manufactures its product. Suppose the total labor cost per week to the firm is $35,000 with 99 workers and the total labor cost with 100 workers is $36,000 . What will the weekly wage rate be if Schleppsi hires the 100th worker?
a. $35 b. $36 c. $100 d. $350 e. $360
Answer the following statement true (T) or false (F)
1) If marginal utility is diminishing, total utility must also be declining. 2) Marginal utility is total utility divided by the number of units consumed. 3) When total utility is at a maximum, marginal utility is zero. 4) When a consumer shifts purchases from X to Y, the marginal utility of X falls and the marginal utility of Y rises.