The classical economists believed that recessions
A. needed to be fought with monetary and fiscal policy.
B. would probably develop into depressions.
C. develop into inflations.
D. would cure themselves.
D. would cure themselves.
You might also like to view...
A summary of a country's economic transactions with foreign residents and governments is called the
A) current account balance. B) capital account balance. C) balance of trade. D) balance of payments.
Econville suffers from a massive earthquake and tsunami that destroys a fourth of its physical resources. What happens to the production possibility frontier?
a. The production possibility frontier does not change. b. The production possibility frontier shifts to the right. c. The production possibility frontier shifts to the left. d. The production possibility frontier shifts down for capital goods but does not change for consumer goods.
An increase in national saving reduces the interest rate and so reduces net capital outflow
a. True b. False Indicate whether the statement is true or false
In the long run, sustained inflation is due to
A. a one-time increase in money growth. B. a continuous increase in aggregate demand. C. a continuous increase in the money growth rate. D. the rising price of oil.