The primary factor that caused most economists to lose their faith in the classical approach to macroeconomic policy was
A. the evidence that classical ideas were useful during economic booms, but not during economic recessions.
B. the theoretical proof that classical ideas were invalid.
C. the presence of both high unemployment and high inflation during the 1970s.
D. the high levels of unemployment that occurred during the Great Depression.
Answer: D
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Brandon finds that Max Solutions can supply computers with the specific configuration he needs. His company enters into a contract with Max Solutions to provide 60 custom-built desktops at an agreed price. The contract between them will ensure each of the following, EXCEPT:
a. that Brandon's company does not back out and make a deal with someone else for a lower price. b. Max Solutions does not sell the computers to another company for a higher price. c. Max Solutions supplies the computers before the scheduled date of delivery. d. Brandon's company compensates Max Solutions in case of cancellation of order at a later date.
An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase B. increase; increase C. decrease; decrease D. increase; decrease
When a person responds to a neutral stimulus ________ is being used.
a. classical conditioning b. operant conditioning c. extrinsic reinforcer d. intrinsic reinforcer
Suppose that Figure 7.4 shows an industry's market demand, its marginal revenue, and the production costs of a representative firm. If the industry was perfectly competitive, it would produce a quantity of:
A. 30 units. B. 50 units. C. 60 units. D. There is not sufficient information.