Classical theory advocates _____________ policy and Keynesian theory advocates ______________ policy
a. nonintervention; intervention
b. active; nonstabilization
c. stabilization; fixed wage
d. fixed rule; passive
a
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The aggregate production function describes the relationship between
A) real GDP and the quantity of labor employed. B) real GDP and the price level. C) the rate of growth of real GDP and inflation. D) real GDP and the unemployment rate.
Which of the following is NOT a real world factual conflict with the neoclassical growth model?
A) Income per capita varies greatly across countries. B) Poor countries do not have a higher rate of return on capital. C) Immigrant labor from poor countries experiences very small increases in income when it moves to rich countries. D) Poor countries' income levels have not converged to the income levels of rich countries.
Allocative efficienty exist when firms produce the output most preferred by consumers
a. True b. False
In the analysis of externalities and market failure, a third party is
a. the party a contractual agreement is meant to benefit b. a person, or persons, who is unintentionally affected by the actions of others c. the third person in a three-way contract d. the person who owns the property right in a contract e. the government attempting to mediate a dispute between the two other parties