While much of New Classical macroeconomics is being refuted by the evidence, at least one part of it may be a permanent legacy to all economists. It is the insistence on a certain aspect of macroeconomic policy:
A) It has as much impact on SAS as on AD.
B) It has its impact on nominal and not real variables.
C) People will try to anticipate it and then act accordingly.
D) It has no impact on SAS or AD, but does affect LAS.
C
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When policy makers attempt to focus on internal balance, they
A) must be talking only about domestic goals. B) must be talking about domestic and international goals. C) must consider both domestic policy and trade. D) Any of the above might be considered internal balance.
Refer to the above figure. Line C in Panel B does NOT represent
A) the equilibrium price. B) average revenue. C) total revenue. D) marginal revenue.
The implications of the zero economic profit condition in a perfectly competitive market implies that the opportunity cost of capital is integrated into the firm’s cost relationships.
Answer the following statement true (T) or false (F)
Alternative Dispute Resolution (ADR) is used by many companies to:
A. reduce the high cost of commercial litigation. B. solve problems associated with the distribution of public goods. C. reduce government intervention in international trade. D. eliminate the need for a court system.