Which one of the following is not a position taken by classical economists?
a. Problems of inflation and unemployment will disappear without government intervention
b. All markets are competitive.
c. All prices are flexible upward and downward.
d. Inflation occurs when the money supply grows faster than real GDP.
e. While government should not engage in countercyclical fiscal policy, it is appropriate that the Fed engage in countercyclical monetary policy.
E
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When we use money to purchase goods and services, we are using money as a
A) reserve of wealth. B) unit of account. C) medium of exchange. D) bartering tool. E) store of value.
The demand for labor curve is derived from the:
A) total product of labor. B) supply curve for labor. C) average product of labor. D) value of marginal product of labor.
What do structural reform policies emphasize?
What will be an ideal response?
The most prominent secondary financial market is
A) the New York Stock Exchange. B) the American Stock Exchange. C) the Nasdaq. D) the over-the-counter market.