Keynesians disagree with the new classical model because
a. people are often irrational.
b. wages are often negotiated through contracts, not auctions.
c. people do not form expectations.
d. wages are set to clear auction markets in both the short run and long run.
e. all of the above
B
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If a nation is currently operating at a point inside its production possibilities curve, it
A. can increase the output of one good without decreasing the output of the other good. B. has fully employed resources. C. has no inefficiently employed resources. D. is operating at full potential.
Borrowers rely on financial intermediaries to hold and find uses for their funds that promise a positive expected rate of return
Indicate whether the statement is true or false
Which concept did Hugo Grotius address and construct in his published work of the 1600s, The Law of War and Peace?
a. international regime b. just war theory c. preemptive attack d. prisoner's dilemma
Some of the crowding out of private expenditures may come in the form of
A) an increase in consumption. B) an increase in net exports. C) a decrease in taxes. D) a decrease in net exports.