Classical macroeconomists think that the best models are ________ and that inflation expectations ________.
A. dynamic; do not matter
B. static; do not matter
C. dynamic; matter
D. static; matter
Answer: C
You might also like to view...
Refer to Table 17.1. The employment rate for this simple economy is
A) 40%. B) 50%. C) 75%. D) 80%.
The following equations represent the demand and supply for silver pendants
QD = 50 - 2P QS = -10 + 2P What is the equilibrium price (P) and quantity (Q - in thousands) of pendants? A) P = $20; Q = 15 thousand B) P = $50; Q = 10 thousand C) P = $10; Q = 30 thousand D) P = $15; Q = 20 thousand
The following graph shows the production possibilities curve for the economy with only two members, Silvia and Art. Silvia can produce either 50 pounds of beef or 2 computers per week, and Art can produce 100 pounds of beef or 1 computer per week. Both of them work 40 weeks per year.
Silvia has a comparative advantage in producing ________, and Art has a comparative advantage in producing ________.
A. beef; beef B. computers; computers C. computers; beef D. beef; computers
Suppose all firms in a competitive market are currently in both short-run and long-run equilibrium. What impact will a lump sum tax have on each firm in the short run? in the long run?
What will be an ideal response?