Money is always neutral. This statement is most likely to be made by a proponent of the
a. new Keynesian model.
b. monetarist model.
c. real business cycle model.
d. classical model.
e. both c and d.
C
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A discouraged worker is an individual who has been unemployed for a significant amount of time and has given up looking for a job because he or she is demoralized about his or her job prospects
a. True b. False Indicate whether the statement is true or false
The following equations describe the prices and marginal costs of producing corn and toys in a country. The numbers in the equations indicate the amounts of labor and land needed to produce a unit of corn and a unit of toys. In the equations, the wage rate and the rental rate are denoted by 'w' and 'r,' respectively.Pcorn = 80w + 40rPtoys = 100w + 30ra. If the price per unit of corn and the price per unit of toys are initially $200, calculate the wage rate and the rental rate. Calculate the labor cost per unit of corn and per unit of toys. What is the rental cost per unit of corn and per unit of toys?b. Suppose post-trade the price of corn increases to $240. The price of toys remains unchanged. What are the new values for 'w' and 'r' after adjustment to the new long-run
situation?c. What is the change in the real wage with respect to each good? What is the change in the real rental rate with respect to each good?d. Relate your conclusions in Part C. to the Stolper-Samuelson theorem. What will be an ideal response?
The first recorded example of a financial bubble was:
A. the "stock market" bubble of the 1920s. B. a "tulip mania" in the 1600s. C. called the Enclosure Movement. D. the "dot com" bubble of the 1990s.
In a ________, the amount of output that any one household gets depends on its income and wealth.
A. command system B. free-market system C. socialist economy D. Marxist economy