Full employment in the classical model is maintained by
A) flexible interest rates.
B) flexible wage rates.
C) flexible prices.
D) flexible income.
B
You might also like to view...
All of the following characteristics are common to both monopolistic competition and perfect competition except
A) firms act to maximize profit. B) firms take market prices as given. C) entry barriers into the industries are low. D) the market demand curves are downward-sloping.
The Fed's strategy of increasing the money supply and lowering interest rates in order to increase real GDP is called
A. Contractionary fiscal policy B. Expansionary monetary policy C. Expansionary fiscal policy
If capital inflow is negative, this suggests a country is:
A. borrowing more than it is lending to other countries. B. lending more than it is borrowing from other countries. C. experiencing balanced trade. D. experiencing a situation where its imports are greater than its exports.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, Point F
A. is efficient and attainable. B. cannot be produced with the current state of technology. C. represents underallocation of resources. D. represents what the people want.