Q: How many economists does it take to screw in a light bulb?A: None. If the light bulb really needed changing, market forces would have already caused it to happen.This joke represents the view of
A. economists who conclude that wages and prices are inflexible.
B. economists who conclude that money illusion is widespread.
C. classical economists.
D. Keynesian economists.
Answer: C
You might also like to view...
In an open economy, an increase in capital inflows ________ the equilibrium domestic real interest rate and ________ the quantity of domestic investment.
A. decreases; increases B. increases; decreases C. increases; increases D. decreases; decreases
Moral hazard can be avoided by:
A. employers monitoring employee effort. B. removing the asymmetric information. C. employers incentivizing employees to maintain consistent effort. D. All of these statements are true.
Which of the following transfer programs in the U.S. is funded by a national tax but administered by state governments?
a. Social security b. Veterans' Administration Benefit program c. Unemployment insurance d. Food stamps e. National Guard activities
Excess reserves that are voluntarily held by institutions are called:
a. Bank equity. b. Customary reserves. c. Preferred assets. d. Funny money. e. Federal funds.