In the classical model, an increase in aggregate demand will lead to an increase in wage rates while a decrease in aggregate demand will
A. leave wages unchanged since workers will not take a cut in pay.
B. increase wages since business will be desperate for labor.
C. decrease wages.
D. change the price of capital.
Answer: C
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Identify the statement which is true of a barter system? a. In a barter system, trade will only occur if there is a double coincidence of wants. b. In a barter system, an individual offers coins to get a good or service
c. In a barter system, an individual offers a commodity money to get fiat money. d. In a barter system, different kinds of money are exchanged for one another. e. In a barter system, individuals are self-sufficient.
Adam Smith wrote that a person should never attempt to make at home what it will cost him more to make than to buy
a. True b. False Indicate whether the statement is true or false
Which of the following is a common criticism of capitalism?
A. poor product quality and little product diversity B. inefficiency of nationalized industries C. inability to adjust quickly to changing economic conditions D. inadequate environmental protection
The quantity of loanable funds available to a corporation depends on the
A. Price of its stock. B. Interest rate the company is willing to offer. C. Present worth of the company's dividends. D. Dividends the company is willing to pay.