Most economists believe that the classical model is the appropriate model for analysis of the economy in the
a. long run, because evidence indicates that money is not neutral in the long run.
b. long run, because real and nominal variables are essentially determined separately in the long run.
c. short run, because money is neutral in the short run.
d. short run, because real and nominal variables are not highly intertwined in the short run.
b
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Low stock market prices might ________ consumers willingness to spend and might ________ businesses willingness to undertake investment projects
A) increase; increase B) increase; decrease C) decrease; decrease D) decrease; increase
It once took 90 percent of our population to grow our food. It now takes only 3 percent of the population to grow our food. Which of the following statements is true?
a. This loss of jobs has been detrimental to our economy. b. The government should provide subsidies to encourage more people to become farmers. c. The reduction in the number of farmers explains the increase in the price of food. d. This is progress because freed-up labor is used to produce other goods.
When the cutthroat oligopolist raises their prices, their competitors will ___________.
Fill in the blank(s) with the appropriate word(s).
Smith and Jones comprise a two-person economy. Their hourly rates of production are shown below. CalculatorsPer HourComputersPer HourSmith10010Jones1206
A. consumption possibilities curve. B. production function. C. supply curve. D. production possibilities curve.