According to classical economists
A. Demand stimulus is needed to produce full employment.
B. Unemployment will not be a serious problem in a market economy.
C. Say's law is not valid.
D. Wage levels are always "sticky."
Answer: B. Unemployment will not be a serious problem in a market economy.
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What evidence exists that industrial concentration increases the rate of technologicaladvance?
What will be an ideal response?
If the Fed decides to sell $10 million in securities and the Paris First National Bank writes out a $10 million check to purchase these securities, then the
a. Paris First National Bank now has $10 million more of excess reserves at the Fed b. Paris First National Bank has $10 million fewer reserves c. Fed has increased its asset position by $20 million d. Fed has reduced its asset position by $20 million e. money supply will likely increase due to the economy's inflationary phase
What does the firm experience when workers are hired after the point at which supply and demand meet?
a. Marginal revenue product rises. b. Marginal productivity increases. c. Variable costs of labor are reduced. d. Additional workers are unprofitable.
The AD curve can be shifted by:
A. both fiscal and monetary policy. B. monetary policy only. C. fiscal policy only. D. neither fiscal nor monetary policy.