The classical economists assumed that
A. monopoly was widespread in the economy.
B. wages and prices were sticky in going downward.
C. wages and prices were flexible.
D. government intervention in the economic system was necessary and helpful.
Answer: C
You might also like to view...
Meredith is looking for work as a computer programmer. Although her prospects are good, she has not yet taken a job. Julie is looking for work in a steel mill. Every time she shows up for an interview, there are more people looking for work than there are openings. Someone waiting in line with her tells her it has been that way for a long time
a. Meredith and Julie are both frictionally unemployed. b. Meredith and Julie are both structurally unemployed. c. Meredith is frictionally unemployed, and Julie is structurally unemployed. d. Meredith is structurally unemployed, and Julie is frictionally unemployed.
The term "other things equal" means that:
A. the associated statement is normative. B. many variables affect the variable under consideration. C. a number of relevant variables are assumed to be constant. D. when variable X increases so does related variable Y.
Which of the following is counted in the GDP in a given year?
A. the dollar value of the housework done by a stay-at-home mom B. the sale of a used Mazda convertible C. the sale of a new screwdriver D. the sale of Facebook stock
Which of the following compete to determine whether the current account improves or worsens following a rise in the real exchange rate?
A) appreciation and depreciation B) crowding Out effect and producers effect C) volume effect and value effect D) volume effect and inflation E) producers effect and value effect