According to classical theory,
A. Macro equilibrium might start out badly and get worse in the absence of government intervention.
B. Business cycles are not relevant and do not occur.
C. Keynes had "neglected to take account of the drag on prosperity which can be exercised by an insufficiency of effective demand."
D. Flexible wages and prices allow a laissez faire economy to adjust wages and prices to shifts in aggregate demand.
Answer: D
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Selling at unreasonably low prices in order to destroy competing firms is known as
a. administered pricing. b. price discrimination. c. collusive practices. d. predatory pricing.
The estimate of potential GDP would decrease if
a. the rate of capital depreciation increased. b. the labor force decreased. c. the price level grew. d. All of the above would increase potential GDP.
The improved health of a nation can increase:
A. economic growth and malnutrition among children. B. productivity of workers and fiscal policy spending. C. the productivity of workers and economic development. D. economic development and illiteracy.
The? world's population is growing at a rate of about
What will be an ideal response?