The classical economists believed
A. wages and prices were inflexible downward.
B. if nothing was done, recessions would become depressions.
C. recessions needed quick countercyclical action by the government.
D. the economy was essentially self-regulating.
D. the economy was essentially self-regulating.
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The demand curve is: QD = 500 - 1/2 P
a. Calculate the (point) price elasticity of demand when price is $100. Is demand elastic or inelastic? b. Calculate the (point) price elasticity of demand when price is $700. Is demand elastic or inelastic? c. Find the point at which point elasticity is equal to -1.
Who of the following would be included in the Bureau of Labor Statistics' "unemployed" category?
a. Miguel, who is on temporary layoff b. Reta, who worked only 15 hours last week c. Marisa, who neither has a job nor is looking for one d. None of the above is correct.
Explain the meaning of the “marginal rate of substitution.”
Please provide the best answer for the statement.
When the economy is operating at a point where aggregate demand equals long-run aggregate supply, it must be true that:
A. the economy is in long-run equilibrium. B. aggregate demand also equals short-run aggregate supply. C. prices and expected prices are the same. D. All of these are true.