Long-run unemployment in the classical model is considered to be impossible because
A. the government will intervene to aid the unemployed.
B. the labor supply is horizontal.
C. flexible prices and wages keep workers fully employed.
D. job placement and training programs are rampant in the United States.
Answer: C
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The Pareto superiority concept _____
a. is equivalent to utilitarianism b. is equivalent to equilibrium in a perfectly competitive market c. compares two different states of the world d. looks at a state of the world and judges its superiority
Which of the following would correspond to a movement downward along a short-run Phillips curve? a. The aggregate demand curve shifts rightward, moving up along a short-run aggregate supply curve. b. The aggregate demand curve shifts leftward, moving down along a short-run aggregate supply curve. c. The short-run aggregate supply curve shifts leftward, moving up along the aggregate demand
curve. d. The money supply curve shifts rightward for a given money demand curve. e. Both the money demand and the money supply curves shift leftward.
A good economic theory or model weeds out unimportant facts from important ones. This process is called ______.
a. abstraction b. reflection c. correlation d. specialization
Which of the following would contribute to a United States current account surplus?
A. The United States makes a unilateral tariff reduction on imported goods. B. General Motors pays a dividend to a Swiss stockholder. C. The United States cuts back on American military personnel stationed in Germany. D. Russian vodka becomes increasingly popular in the United States.