The classical economic doctrine held that the normal equilibrium position of the economy was one of
a. rising interest rates.
b. some unemployment.
c. rising prices.
d. full employment.
d. full employment.
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Suppose the Fed decreases the money supply. In response households and firms will ________ short term assets and this will drive ________ interest rates
A) sell; down B) buy; down C) sell; up D) buy; up
If an economy is operating at a point inside the production possibilities frontier, then
a. some of the nation's resources are unemployed b. the production decisions are made by the government c. unlimited resources must satisfy scarce desires d. there is a scarcity of human resources relative to human wants therefore society must have some mechanism for making choices e. society is paying too much for wages
When the government created the Consumer Product Safety Commission they created what type of government regulation?
a. social regulation b. economic regulation c. antitrust policy d. none of the above
Over the last 35 years, the wage gap between people of different education levels has ______.
a. widened b. narrowed c. disappeared d. not changed