New classical economists build their theories upon
A) adaptive expectations.
B) inflexible wages and prices.
C) rational expectations.
D) the assumption that it takes a long time for markets to achieve equilibrium values.
C
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The above table has data from the nation of Atlantica. Based on these data, when disposable income equals 8.0 there is
A) dissavings of $0.5 trillion. B) dissavings of $15.5 trillion. C) savings of $15.5 trillion. D) savings of $0.5 trillion. E) dissavings of $7.5 trillion.
A country benefits from trade if it is able to obtain a good from a foreign country:
a. that has a very low domestic demand. b. the production of which requires a steady supply of unskilled labor. c. by giving up less of other goods than it would have to give up to obtain the good at home. d. by giving up more of other goods than it would have to give up to obtain the good at home. e. that has a substantial number of substitutes in the domestic market.
An effluent fee is an example of
A. a government policy to promote the production of a product with an external benefit. B. a government policy to correct for an external cost. C. a government policy to promote the production of a product with an external cost. D. a government policy to correct for an external benefit.
A perfectly inelastic demand would imply what kind of demand curve?
A. vertical B. horizontal C. downward sloping D. upward sloping