Which of the following are inherent in classical theory?
a. Flexible prices.
b. Flexible wages.
c. Long-run full employment.
d. All of these.
d
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Economists call the influences of the decisions of others on our decisions ________
A) peer effects B) moral hazard C) externalities D) cluster effects
Congressman Flack votes for a program that will benefit the constituents of Congressman Walpole. The public choice model suggests that Flack's vote is best explained by which of the following?
A) logrolling B) the voting paradox C) party loyalty D) rational ignorance
Which of the following was an argument for using fiscal policy in situations like the Great Recession?
a. Congress can act quickly. b. The size of a recessionary gap may require the use of both fiscal and monetary policy. c. Once the federal funds rate is reduced to zero, monetary policy is less effective. d. all of the above
The most common argument for income redistribution is that
A. it provides more incentive for people to try to better themselves. B. it works-it reduces the poverty rate. C. a society as wealthy as the United States has a moral obligation to provide its members with the basic necessities of life. D. it improves efficiency in the economy.