The assumption that labor markets clear makes it very easy for the classical model to explain expansions
a. True
b. False
B
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A rise in the value of a currency is called a(n)
A) consolation. B) integration. C) appreciation. D) depreciation.
A firm's long-run average cost curve shows the ________ average cost at which it is possible to produce each output when the firm has had ________ time to change both its labor force and its plant
A) highest; sufficient B) lowest; sufficient C) lowest; insufficient D) highest; insufficient E) average; sufficient
An example of "automatic stabilizers" is a rise in ________ causing the budget deficit to ________
A) real GDP, fall B) real GDP, rise C) government expenditures, fall D) government expenditures, rise E) the average tax rate, fall
The president of the United States promises that the nation's economy will simultaneously produce more defense goods without any decreases in the production of other goods. Under which of the following conditions could such a promise be valid?
A) if the United States were producing at a point on its production possibilities curve B) if the United States were producing inside its production possibilities curve C) if the United States were producing to the right of its production possibilities curve D) None of the above; the production possibilities curve must shift to the right.