The classical macroeconomic model argues that the economy has built-in forces that automatically eliminate unemployment and quickly move the economy to its full employment level of real GDP. Which assumption is critical to this argument?
A. Rigid wages and prices
B. Flexible wages and prices
C. Natural rate of unemployment
D. Profit motive
B. Flexible wages and prices
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Which statement is true?
A. All regions of the United States were primarily agricultural in 1865. B. Only the South was primarily agricultural in 1865. C. Only the North and West were primarily agricultural in 1865. D. None of the statements are true.
Real GDP per person averaged $150 a year (in 2009 dollars) from 1,000,000 BC until 1620. Then in ________ real GDP began to increase without limit and by 1850 had risen to twice its 1650 level because ________
A) 1750; of the Industrial Revolution B) 1776; United States was founded C) 1750; Columbus arrived in the Americas D) 1650; the Pilgrims arrived in the Americas E) 1650; of the Industrial Revolution
A decrease in investment causes the price level to ________ in the short run and ________ in the long run
A) decrease; decrease further B) increase; decrease C) increase; increase further D) decrease; increase
If resource prices are fixed and the product selling price rises, then
What will be an ideal response?