The classical model makes little distinction between the long run and short run because
A) wages and prices adjust so fast that the economy is quickly moving towards the long run.
B) the model has not been fully developed yet.
C) current changes influence the long run, so it is not possible to plan for the future.
D) the classical economists knew that we are always operating in the short run.
A
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The supply curve for CDs shows the
A) minimum price that consumers are willing to pay if a given quantity of CDs is available. B) maximum price that consumers are willing to pay if a given quantity of CDs is available. C) maximum price that producers must be offered to get them to produce a given quantity of CDs. D) minimum price that producers must be offered to get them to produce a given quantity of CDs.
If the income elasticity for chocolate chip cookies is 1.84, then chocolate chip cookies are
A) a normal good and income inelastic. B) a normal good and income elastic. C) an inferior good and income inelastic. D) an inferior good and income elastic.
What type of economic system is commonly described as being controlled by an "invisible hand"?
a. A traditional economy. b. A command economy. c. A market economy. d. A communist economy.
If a certain automotive part can be purchased in Mexico for 32 pesos or in the United States for $5.25, and if the nominal exchange rate is 8 pesos per U.S. dollar, then the automotive part:
A. is less expensive in the United States. B. costs the same in Mexico and the United States. C. is more expensive in the United States. D. is more expensive in Mexico.