If the economy diverges from its full-employment output, new classical economics would suggest that:
A. A change in the velocity of money would be all that is needed to return it to its full-employment output
B. An improvement in insider-outsider relationships is all that is needed to return it to its full-employment output
C. An efficiency wage in the economy would return it to its full-employment output
D. Internal mechanisms within the economy would automatically return it to its full-employment output
D. Internal mechanisms within the economy would automatically return it to its full-employment output
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Which of the following statements is true?
A. Government cannot remove individuals from a prisoner's dilemma setting and make them better off. B. As long as government charges each individual a tax that is more than the gain received by being removed from a prisoner's dilemma setting, then government makes that individual better off. C. Government can remove individuals from a prisoner's dilemma setting by changing the payoff matrix. D. a and c E. all of the above
If demand increases and supply decreases, quantity will
a. always increase b. always decrease c. increase only if supply decreases more than demand increases d. increase only if supply decreases less than demand increases e. decrease only if supply decreases less than demand increases
In the long run, the exit of firms from a perfectly competitive market is caused by
a. a steeper demand curve constraining the firm b. normal profits c. economic losses d. antitrust enforcement e. government policy
The labor force includes
A. only those who are employed. B. those who are employed, plus the unemployed. C. the total population, less retirees. D. the total population, less retirees and students. E. the total population, less retirees, students, and government workers.