Which of the following statements is FALSE?
A. The economy is in equilibrium when saving equals investment.
B. The classical school believed we are always tending toward full employment.
C. The classical economists' aggregate supply curve is vertical in the short run.
D. The economy is in equilibrium when aggregate demand equals aggregate supply.
C. The classical economists' aggregate supply curve is vertical in the short run.
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Government policies which reduce the price of education increase ________ in the AK growth models or increase ________ in the production function for new ideas in the two-sector growth model
A) the capital stock; the productivity of researchers B) the efficiency index; the size of the labor force C) the proportion of the labor force devoted to research; the capital stock D) the productivity of researchers; the size of the labor force
The only money that can be used as a standard of value is fiat money
a. True b. False Indicate whether the statement is true or false
What is the neutrality of money with respect to the quantity theory of money?
A. The money supply can affect the growth rate of prices (inflation) in the long run. B. The money supply cannot affect the growth rate of real GDP in the long run. C. The money supply can affect the growth rate of the real GDP in the short run. D. All of the above.
Refer to the information provided in Figure 29.1 below to answer the question(s) that follow.
Figure 29.1Refer to Figure 29.1. If the condition of the economy at Point H is realized by policy makers when the economy is at Point I, policy is likely to be inappropriate due to
A. the implementation lag. B. the response lag. C. crowding out. D. the recognition lag.