Those who favor passive policy making argue that all of the following exist EXCEPT
A) perfectly flexible wages and prices.
B) the trade off between inflation and unemployment is not stable in the short run and is non-existent in the long run.
C) pure competition is typical.
D) aggregate demand shocks can influence real GDP and unemployment.
D
You might also like to view...
The total volume of business sales in our economy is several times larger than GDP because ________.
A. GDP does not take taxes into account B. GDP grossly understates the value of our annual output C. GDP excludes intermediate transactions D. Total sales are in money terms and GDP is always stated in real terms
In the circular flow model, households provide all of the following resources to firms except
a. labor b. money c. capital d. entrepreneurship e. land
Firms will borrow to finance capital expansion until the MRP of the investment equals the
a. MRP of labor. b. marginal cost of the finished good. c. marginal physical product of capital. d. interest payment charged for borrowing.
$10 per hour.
What will be an ideal response?