According to the new classical view, if the money supply and prices fall but output remains the same indicates that
a. expectations must be adaptive.
b. this change in the money supply was anticipated.
c. aggregate supply must have shifted upward.
d. none of the above can explain this.
B
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Increases in investment exceed increases in output because of the multiplier effect
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Airlines have avoided price discrimination among their customers
Indicate whether the statement is true or false
Which of the following would be expected if the tariff on foreign-produced automobiles were increased?
a. The domestic price of automobiles would fall. b. The supply of foreign automobiles to the domestic market would decline, causing auto prices to rise. c. The number of unemployed workers in the domestic automobile industry would rise. d. The demand for foreign-produced automobiles would increase, causing the price of automobiles to increase in other nations.
If the unemployment rate is 6 percent, that means that 6 percent of
a. the population is not working b. potential workers do not have jobs c. the workforce is searching for work but has not found a job at that time d. the individuals who are looking for work cannot find jobs e. the population is not looking for a job