Classical economists think general equilibrium is attained relatively quickly because
A. the level of output adjusts quickly.
B. the real interest rate adjusts quickly.
C. the real wage rate adjusts quickly.
D. the price level adjusts quickly.
Answer: D
You might also like to view...
Refer to Figure 4.5. In which of the following cases will you be rewarded with the most extra points?
A) Seven of your classmates choose Dash and you and the rest choose Solid. B) All of your other classmates choose Solid and you choose Dash. C) Half of your classmates choose Solid and you and the rest choose Dash. D) One of your classmates chooses Dash and you and the rest choose Solid.
All else equal, anything that increases the transportation costs ________ the number of consumers shopping at ________.
A) increases; larger, less expensive stores B) increases; local, more expensive stores C) does not change; local, more expensive stores D) does not change; larger, less expensive stores
Which of the following is most likely to be an increasing-cost industry?
a. An industry whose firms experience diseconomies of scale b. An industry whose firms experience economies of scale c. An industry that is a major buyer in the markets for the inputs it uses d. An industry that is a very small buyer in the markets for the inputs it uses e. An industry that is a major seller in the markets for its outputs
If your income increases from $30,000 to $35,000 and your consumption increases from $11,000 to $12,000 . your marginal propensity to consume (MPC) is:
a. 0.2. b. 0.4. c. 0.5. d. 0.8. e. 1.0.