In answer to the question, "Could they see the Great Depression coming?", Hughes and Cain (2011) respond:
(a) No—Many people firmly believed that markets would self-correct and eventually recover with no government intervention
(b) No—many people seemed to believe that the prosperity of the 1920s would continue
indefinitely because they believed that the economy was built to sustain high and stable
rates of growth with minimal cyclical fluctuation when markets were permitted to clear themselves without government interference.
(c) Yes—in the late 1920s, a majority of economists reported and publicized that the economy
was becoming dangerously unbalanced and that a serious downturn was near.
(d) Yes and no—by the late 1920s, the economics profession was about equally split on the possibility of a serious downturn in the near future.
(b)
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The table above shows
A) a total product schedule. B) the market for labor. C) a production possibility frontier. D) a supply schedule. E) a demand for labor schedule.
If price elasticity of supply is less than 1
A) supply is elastic. B) demand is elastic. C) demand is inelastic. D) supply is inelastic.
In a dynamic economy under ideal conditions,
a. the unemployment rate should be near zero. b. some unemployment would be present due to workers temporarily being out of work while changing jobs. c. unemployment would tend to move upward slightly as prices increased. d. unemployment would tend to move slightly downward as unemployment compensation benefits increased.
Sensitivity analysis is restricted to natural sciences.
Answer the following statement true (T) or false (F)