A difference between the classical and new classical models is that
a. classical economists assumed that labor suppliers knew the real wage, while the new classical economists assume they form a rational expectation of the real wage.
b. classical economists assumed that the money wage was flexible while the new classical economists assume it was fixed.
c. new classical models do not assume perfect competition.
d. labor supply in the classical model is a function of the real wage while labor supply depends on the money wage in the new classical model.
e. both a and c.
E
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A. increase; decrease B. decrease; increase C. increase; increase D. decrease; decrease
The __________ is a regulator of financial markets
A) Comptroller of the Currency B) Commodities Futures Trading Commission C) FDIC D) Federal Reserve
The concept of absolute advantage relies on
A) the idea of comparative advantage. B) the ability to produce more units of an item with a given amount of resources. C) the idea of opportunity cost. D) the concept of economic efficiency as measured on the production possibility curve.
When interest rates go up, people are
a. more likely to borrow b. less likely to borrow c. does not affect a person's consumption d. None of the above