According to the Classical economists, the economy
A. requires fine-tuning to reach full employment.
B. will never be at full employment.
C. has sticky prices in many industries.
D. is self-correcting.
Answer: D
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What decision must be made by firms with market power that is not made by firms which operate in perfectly competitive markets? Explain
What will be an ideal response?
In 1921, prices surged, causing a decrease in average real wages
Indicate whether the statement is true or false
An economy that interacts with other economies is called:
A. an open economy. B. a closed economy. C. an international economy. D. a global economy.
Which of the following is true? a. Economic reasoning implies that individuals will acquire all possible information about a choice before making it. b. It is not rational for people to make decisions that could turn out to be mistaken
c. Reducing information costs to consumers and suppliers could permit more intelligent market decisions and lead to greater satisfaction. d. Occupational licensing laws generally act to protect misinformed consumers from getting shoddy services and enhances competition, leading to lower prices.