Which of the following is inherent in the classical view of a self-adjusting economy?
A. Flexible prices and wages
B. Inflexible prices and wages
C. Instability
D. Economic growth dependent on Innovation Theory
E. Government spending to stimulate aggregate demand
Ans: A. Flexible prices and wages
You might also like to view...
Real GDP per person in the country of Flip is $10,000, and the growth rate is 10 percent a year. Real GDP per person in the country of Flap is $20,000 and the growth rate is 5 percent a year
When will real GDP per person be greater in Flip than in Flap? A) in 2 years B) in 15 years C) never D) in 10 years
The price of student special decreased from €4.00 to €3.50 in the Canteen. Which of the following effects would you expect?
a) A movement along the demand curve for student special resulting in a higher price and a lower quantity demanded. b) A movement along the demand curve for student special resulting in a lower price and a higher quantity demanded. c) A shift in the demand curve for student special to the left. d) A shift in the demand curve for student special to the right.
Firms that exhibit price-taking behavior
A) wait for other firms to set price, take it as given, and charge a higher price. B) have outputs that are too small to influence market price and thus take it as given. C) take pricing behavior in their own hands. D) are independently capable of setting price.
During economic expansions
A. employment rises by a higher percentage than output, and the ratio of output to workers falls. B. output rises by a larger percentage than employment, and the ratio of output to workers falls. C. employment rises by a larger percentage than output, and the ratio of output to workers rises. D. output rises by a larger percentage than employment, and the ratio of output to workers rises.