What is the main difference in the classical model as compared to the short-run macro model?
a. In the classical model the economy automatically operates at potential GDP while in the short run model the economy can operate at a different level of GDP
b. In the short run model the economy automatically operates at potential GDP while in the classical model the economy can operate at a different level of GDP
c. Fiscal policy has no effect in the short run model but is very effective in the classical model
d. There is no difference in the predictions of the two models
e. The classical model does a better job in predicting recessions than the short-run macro model
A
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The transactions demand for money is related to money functioning as a
A) unit of accounting. B) store of value. C) medium of deferred payment. D) medium of exchange.
If the money wage rate rises,
A) the AS curve shifts leftward. B) there is a movement down along the AS curve. C) there is neither a movement along or a shift in the AS curve. D) the AS curve shifts rightward. E) there is a movement up along the AS curve.
As table manufacturing company produces more tables, the average total cost of each table produced increases. This is because:
a. Total fixed costs are decreasing as more tables are produced b. There is economies of scale c. There is diseconomies of scale d. Total variable cost is decreasing as more clubs are produced.
Supply-side advocates believe that when taxes and regulations are too burdensome, people will: a. save less
b. work less. c. provide less investment capital. d. do all of the above.