The classical model uses the assumption that
A. economic markets are fragile and have no tendency to move towards an equilibrium.
B. interest rates are not flexible.
C. monopoly is widespread in the economy.
D. all wages and prices are flexible.
Answer: D
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You bought a subscription for an online magazine and shared your log-in details with a friend. Your friend is a ________ in this case
A) free-rider B) rent seeker C) speculator D) hedger
Which of the following is not part of the "taxes" provision of the Patient Protection and Affordable Care Act (ACA)?
A) Workers earning more than $200,000 pay higher Medicare payroll taxes. B) Investors earning more than $200,000 pay a new tax on their investment income. C) Pharmaceutical firms and health insurance firms pay new taxes. D) Beginning in 2018, all taxes on employer-provided health insurance plans will be reduced or eliminated.
Once economists take into consideration changes in the expected inflation rate and supply shocks, the Phillips curve
A) only remains useful when explaining the long-run trade-off between unemployment and inflation. B) remains a useful tool for explaining the short-run trade-off between unemployment and inflation. C) is no longer a useful tool for explaining any trade-off between unemployment and inflation. D) accurately explains the short-run and long-run trade-offs between unemployment and inflation.
Suppose the Inkuyo family invests in the local bottling corporation. Albert, Brad, Carol, and Diana each invest separately. At the end of a very successful quarter, Carol and Brad receive a payment from the corporation equal to 10 percent of their investment. Albert receives 7 percent, but is paid before Carol or Brad. Diana receives 6 percent and is paid before Albert. If Albert knew how much he
was going to receive before the check arrived, he most likely invested in a. common stock b. preferred stock c. indirect stock ownership d. mutual funds e. low-yield dividends