What all "New Classical" models have in common is the assumption of
A) imperfect information.
B) continuous clearing of product and labor markets.
C) the primary importance of technological and supply shocks in causing business cycles.
D) downward nominal wage rigidity.
E) countercyclical real wages.
B
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Critically evaluate the following statement. "The presence of risk and uncertainty poses a problem for the workings of the market."
What will be an ideal response?
The Secretary of Labor states that wage rates in the country have risen by 2 percent this past year. The head of a local labor union states that wage gains have not kept pace with the 3 percent rate of inflation. The Secretary's statement is a (n) ____ economic statement, and the labor head's statement is a (n) ____ economic statement
a. normative; normative b. normative; positive c. positive; normative d. positive; positive e. proper; improper
The marginal rate of substitution between two goods always equals the
a. marginal utility of one divided by the marginal utility of the other. b. marginal utility of one times the marginal utility of the other. c. price of one good divided by the price of the other. d. Both a and c are correct.
A monthly budget can help you achieve financial security by
What will be an ideal response?