Classical economists thought that
A. flexible wages and prices were the principal causes of recessions.
B. the Great Depression confirmed their view of the business cycle.
C. government policies and spending were needed to keep the economy at full employment.
D. ?price, wage, and interest rate flexibility can quickly cure any tendencies for a recession.
Ans; D. ?price, wage, and interest rate flexibility can quickly cure any tendencies for a recession.
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Attractive landscaping increases the property values of surrounding homes, creating a marginal benefit. The figure above represents the market for monthly landscaping contracts
a) What is the marginal social benefit of the 40th contract? Of the 60th contract? b) What is the marginal private benefit of the 40th contract? c) What is the marginal external benefit of the 40th contract? d) What is the unregulated competitive equilibrium price and quantity? e) What is the efficient quantity? f) What is the amount of the deadweight loss?
If a production possibilities frontier is bowed out (concave to the origin), then production occurs under conditions of
A) constant opportunity costs. B) increasing opportunity costs. C) decreasing opportunity costs. D) infinite opportunity costs. E) uncertain opportunity costs.
See Scenario 4.1. Holding Daniel's income and Pd constant at $240 and $3 respectively, what is Daniel's demand curve for cake?
A) Qc = 240 - Pc B) Qc = 240/Pc C) Qc = 120/Pc D) Qc = 240/(3 + Pc) E) none of the above
A U.S. computer manufacturing company seeking to expand its operations to a lesser- developed country can expect
a. socioeconomic issues to be unimportant b. cost structures to be different c. to easily apply the same technologies as in the United States d. labor skills to be similar e. the same infrastructure as in the United States