Which of the following groups believes that stabilization policy can have some short-run success, but cannot sustain that success into the long run?
a. classical school
b. Keynesian school
c. neo-Keynesian school
d. rational expectations school
e. supply-side school
C
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If more and better technology is used for producing wheat in the United States than in a lesser-developed country, then the:
a. MRP of the U.S. workers will be higher than the MRP of the workers in the lesser-developed country. b. MRP of the U.S. workers will be lower than the MRP of the workers in the lesser-developed country. c. demand for the U.S. workers will be lower than the demand for the workers in the lesser developed country. d. price of wheat will be higher in the United States than in the lesser-developed country. e. wages of the U.S. workers will be lower than the wages of the workers in the lesser-developed country.
Taxes are injections into the circular flow of income and expenditure model
a. True b. False Indicate whether the statement is true or false
Mutually beneficial trade between buyers and sellers drives a market to equilibrium
Indicate whether the statement is true or false
A common fallacy that is used to oppose trade is the idea that
A. the only gains from trade go to the rich, so the poor must lose. B. “you get what you pay for.” C. “if it’s not broken, don’t fix it.” D. one country’s gain must be another’s loss. E. what is true for one is true for all.