The classical school
A. was the dominant school of economic thought after the Great Depression.
B. advocated laissez-faire.
C. was mainly concerned with aggregate demand.
D. believed that about half of the money saved would be invested.
B. advocated laissez-faire.
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The term for an innovative new product or production technology that disrupts the status quo in a market, leading the innovators to earn more income and profits and the other firms to lose income and profits, unless they can come up with their own innovations is called a(n)
a. innovative market change b. disruptive market change. c. productivity market change d. technological market change
According to the quantity theory of money, if the economy were facing inflation, the Federal Reserve Bank could combat it by:
A. increasing the supply of money. B. increasing taxes. C. cutting taxes. D. decreasing the supply of money.
Which is an example of a negative externality?
A. The higher price you pay when you buy a heavily advertised product. B. An increase in the value of land you own when a nearby development is completed. C. The costs paid by a company to build an automated factory. D. Decreased property values in a neighborhood where several houses are burglarized.
Which of the following is likely to increase the total efficiency units of labor in an economy?
A) An increase in the level of education attained by each worker B) An increase in the amount of capital available to each worker C) An increase in the inflation rate in the economy D) An increase in the unemployment rate in the economy