Which of the following schools of thought reject the simple fixed-price model in favor of a model in which the aggregate supply curve is relatively flat at low levels of real GDP and slopes upward as real GDP approaches its potential level?
a. The new Keynesian
b. The monetarist
c. The traditional classical
d. The new classical
e. The Marxist
a
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Recessions are commonly defined to occur
A) whenever unemployment increases. B) when growth in real GDP decreases for two consecutive quarters. C) when growth in real GDP is negative for two consecutive quarters. D) when the unemployment rate exceeds 6 percent.
Rent control is usually justified on the grounds that it protects moderate- to low-income families from the burden of rapidly rising rents and from eviction if they are unable to pay. It also prevents landlords from reaping windfalls as property values rise. Opponents note that rent controls usually lead to a reduced supply of rental housing and shortages. The proponents of rent controls support
them primarily on the grounds of a. efficiency. b. equality. c. externalities. d. cost disease of services.
If the benefits from trade are larger than the costs of trade, _____
a. a tariff should be imposed on the traded good b. trade should be allowed c. the domestic price of the traded good should be regulated d. the domestic consumption of the traded good should be taxed
Which of the following groups believe that lower tax rates will increase the incentives to work, invest, and produce?
A. Monetarists. B. Supply-siders. C. New classical economists. D. Keynesians.