Describe the differences between classical and Keynesian economists in terms of their views about monetary neutrality
What will be an ideal response?
Keynesians believe that monetary neutrality holds in the long run but not in the short run. Classical economists are more accepting of the view that money is neutral even in the relatively short run.
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Unemployment refers to a situation in which an individual: a. prefers part-time work rather than full-time work
b. has given up looking for a job because he is discouraged about his prospects. c. is looking for a job but is unable to find one. d. is jobless and also not looking for a job.
Jesse just graduated from university, and is looking for her first job. Jesse is
A) structurally unemployed. B) cyclically unemployed. C) frictionally unemployed. D) not unemployed. E) not in the labour force
Investment
What will be an ideal response?
The perfect competitor shown in the graph above is in the
A. short run making a profit.
B. short run taking a loss.
C. long run making a profit.
D. long run breaking even.