Which of the following is true about classical economists?
a. They argued that the sources of depressions and high unemployment lay within the market system.
b. They advocated laissez-faire policies to promote economic growth
c. They believed the economy would naturally tend toward unemployment.
d. They believed prices and wages were rigid.
e. They encouraged government intervention in markets.
b
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The percentage of income that Americans save each year ________
A) is much higher than the percentage the Chinese citizens save B) is higher than the saving rate of most industrialized countries C) is lower than the saving rate of most industrialized countries D) increased by a factor of five every year since the 1970s E) none of the above
Which of the following is correct? When the actual amount supplied exceeds the actual amount demanded, then:
a. Inventories rise, unemployment tends to rise, and prices tend to fall. b. Inventories rise, unemployment tends to fall, and prices tend to rise. c. Inventories fall, unemployment tends to rise, and prices tend to rise. d. It is impossible for these two to be unequal. e. The nation falls into an economic recession.
In the short run, an increase in the money supply is likely to lead to
a. lower unemployment and lower inflation. b. lower unemployment and higher inflation. c. higher unemployment and lower inflation. d. higher unemployment and higher inflation.
Jackson hates to work. He receives a great deal of enjoyment from leisure time. Jackson's elasticity of labor supply is
A. 1. B. Low, perhaps even negative. C. Highly negative. D. High.