The "new classical" economics took advantage of the disarray and partial eclipse of Keynesian economics to reestablish macro model-building based on the assumption of price ________ and market ________
A) flexibility, clearing
B) flexibility, non-clearing
C) stickiness, clearing
D) stickiness, non-clearing
A
You might also like to view...
The rate of economic growth will be faster if
A) the rate of growth of the population is higher. B) consumption spending is greater. C) the rate of saving is higher. D) the rate of growth of the money supply is higher.
Under the adaptive expectations theory, expansionary monetary and fiscal policies designed to reduce the unemployment rate will be
a. ineffective in the long run. b. ineffective in the short run. c. noninflationary. d. all of the above.
"When a third party (for example, an insurance company or the government) pays all or most of the cost of a good or service, the incentive of consumers to shop for the best value per dollar spent and of producers to offer the item at an economical price is substantially reduced." This statement is
a. essentially true. b. false; consumers will still have a strong incentive to search for the most economical price even if someone else is paying the bill. c. false; producers will still have a strong incentive to keep prices low even if consumers are non-responsive to price differences among suppliers. d. false; the party paying for the good will not influence the incentive of either consumers or producers to economize.
If Colombia has a comparative advantage over Mexico in the production of coffee, then:
A. Colombia has the ability to produce more coffee than Mexico with the same resources. B. Colombia probably sells coffee to Mexico. C. Mexico should trade coffee to Colombia. D. Mexico is more productive at making coffee than Colombia.