To classical economists, it is always true that
a. there is zero unemployment.
b. actual output is always equal to potential output.
c. excess demand for goods is possible unless prices are forced to fall.
d. the marginal product of labor exceeds the real wage.
B
You might also like to view...
Mail-in ballots are designed to:
A. increase your ability to fulfill your civic duty. B. increase utility derived from voting. C. decrease the costs associated with voting. D. increase the accuracy voting process.
The repurchase agreement market dried up during the Great Recession because:
a. Counterparty risk increased, which caused normal lending channels to fail and lines of business to shrink. b.The collateral backing these agreements fell in value, causing large massive calls for additional collateral. c. Many participants were uncertain about the value of the securities backing these agreements. d. All of the above.
One union follows another union and starts a work stoppage. This is an example of a
A) sympathy strike. B) secondary boycott. C) closed shop. D) union shop.
When the anticipated rate of inflation is 2 percent and the real rate of interest is 4 percent, the nominal rate of interest is
A. 0 percent. B. 1 percent. C. 2 percent. D. 6 percent.