To avoid a coordination failure, the intentions of savers and investors must be both
a. increasing.
b. at their planned levels.
c. more than full employment GDP.
d. at levels set by the government.
b
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An increase in unemployment benefits ________ and an increase in international competition that changes the location of jobs ________
A) increases frictional unemployment; increases structural unemployment B) increases structural unemployment; decreases frictional unemployment C) decreases cyclical unemployment; decreases cyclical unemployment D) decreases cyclical unemployment; increases cyclical unemployment E) decreases structural unemployment; decreases cyclical unemployment
According to the new classical system,
a. an anticipated change in aggregate demand will cause labor suppliers to make price forecast errors and will, therefore, affect output and employment. b. anticipated changes in aggregate demand will not affect output and employment because labor suppliers have perfect information about the price level. c. unanticipated changes in aggregate demand will shift both the aggregate demand schedule and the aggregate supply schedule. d. both b and c. e. None of the above
Which of the following will not shift the market supply curve for corn?
a. a change in the price of corn b. a change in the price of soybeans c. a change in the price of herbicides and pesticides d. a change in storage technology e. a change in the number of acres planted in corn
The primary function of central banks is to:
A. increase risk and volatility to increase compensation. B. increase the uncertainty that firms face in making investment decisions. C. eliminate the need for banks to collect financial information. D. control inflation, as well as help reduce the size and frequency of business cycle fluctuations.