Classicals:
A. generally favor laissez-faire policies.
B. believe that all unemployment is cyclical unemployment.
C. believe that frictional unemployment does not exist.
D. generally favor activist government policies.
Answer: A
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A per-unit government subsidy to producers of a good tends to
A) reduce the supply of the good. B) increase the supply of the good. C) shift the supply curve to the left. D) not have any effect on the good's supply.
Suppose the following: (1 ) the wage rate rises, (2 ) the interest rate rises, (3 ) any change in AD is greater than any change in SRAS. Based on this information, in the short run Real GDP will __________ and the price level will __________
A) rise; rise B) fall; rise C) fall; fall D) rise; fall
Money is:
A. the same as income. B. all financial assets. C. the sum of assets minus debts. D. any asset used to make purchases.
Which of the following describes the asymmetry Mancur Olson observed in the incentives to support and oppose trade policy?
A) The benefits of those seeking protection outweigh the costs imposed by the protection. B) The benefits of protection are spread out over a large number of firms and industries, but the costs are concentrated on consumers. C) The benefits of policy are concentrated, and the costs are spread out over a large number of participants. D) The costs of protection are concentrated on a few firms, and the benefits of protection are spread out over a large number of consumers.