According to classical macroeconomists, prices adjust ________ to shocks, so the government should ________.
A. rapidly; fight recessions
B. rapidly; do little
C. slowly; fight recessions
D. slowly; do little
Answer: B
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An industry with a large number of firms, differentiated products, and free entry and exit is called
A) perfect competition. B) monopolistic competition. C) oligopoly. D) monopoly. E) monopolistic oligopoly.
An automatic increase in a wage rate found in some contracts is known as a
A) change of labor agreement. B) cost of labor arrangement. C) cost of living adjustment. D) charge for living amendment.
Globalization can be defined as:
a. the attitude or policy of placing the interests of the entire world above those of individual nations. b. viewing the entire world as a proper sphere for one nation to project political influence. c. a period in history that has witnessed a dramatic change in world political thought and the balance of power. d. an increased cross-border flow of trade in goods, services, and financial assets, along with an increased international mobility of technology, information, and individuals. e. a social movement that supports global cooperation and interaction, but which opposes the negative effects of economic development across nations.
Which of the following financial assets is most likely to have the chance of a higher rate of return than the others?
A. Mutual funds B. Savings accounts C. Bonds D. Stocks