The Classical economists argued that:
A. if unemployment occurs, it will cure itself because wages will fall.
B. if inflation occurs it will cure itself because prices, wages, and interest rates will rise.
C. aggregate expenditures may be too low.
D. a market economy will not experience unemployment in the short run.
Answer: A
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The exit of firms from a monopolistically competitive market structure causes the demand curves facing the existing sellers to shift ________ and to become ________
A) leftward; flatter B) rightward; flatter C) leftward; steeper D) rightward; steeper
Refer to Table 13-1. What portion of the marginal revenue of the 4th unit is due to the output effect and what portion is due to the price effect?
A) output effect = -$0.50; price effect = $5.00 B) output effect = $24.00; price effect = $19.50 C) output effect = $6.00; price effect = -$1.50 D) output effect = $6.50; price effect = $2.00
A monopolistically competitive firm has the free entry characteristics of ________ and the price setting characteristics of ________
A) an oligopolistic market; perfect competition B) perfect competition; a monopoly C) a monopolistic market; a cartel D) perfect competition; perfect competition
An efficient way to move toward the Nash equilibrium is called:
a. an agreement. b. a convention. c. a principle. d. a resolution. e. a convergence.