One of the necessary conditions for the classical model to be TRUE is that
A) wages were flexible and prices are fixed. B) wages and prices are fully flexible.
C) wages and prices are partly flexible. D) wages and prices will not change.
B
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Refer to Figure 15-3. Suppose the monopolist represented in the diagram above produces positive output. What is the profit/loss per unit?
A) loss of $7 per unit B) profit of $14 per unit C) profit of $30 per unit D) loss of $21 per unit
The slope of a line is the:
A. change in the value on the vertical axis divided by the change in the value on the horizontal axis. B. value on the horizontal axis divided by the value on the vertical axis. C. value on the vertical axis divided by the value on the horizontal axis. D. change in the value on the horizontal axis divided by the change in the value on the vertical axis.
Answer the following questions true (T) or false (F)
1. As output increases, the distance between average total cost and average variable cost increases. 2. In the long run the relevant cost is total cost. 3. If the long-run average total cost curve is downward-sloping, then the firm is experiencing decreasing returns to scale.
According to advocates, counter cyclical policies ________.
A) lead to hyperinflation B) lower output below its potential level C) increase the intensity of economic fluctuations D) smooth the rate of growth of the economy over time