According to the classical economists, unemployment was a temporary deviation from equilibrium, and certain forces in the economy would return it to full employment. Such forces did not include
a. price competition.
b. wage competition.
c. a variable rate of interest.
d. discretionary government spending.
d. discretionary government spending.
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If firms find that consumers are purchasing more than expected, which of the following would you expect?
A) The economy will adjust to macroeconomic equilibrium as inventories fall, and production and employment fall. B) Aggregate expenditure will likely be greater than GDP. C) Aggregate expenditure will likely be less than GDP. D) The economy will adjust to macroeconomic equilibrium as inventories rise, and production and employment fall.
A single price monopolist has a demand curve: P = 500 - 50Q. It has the total cost curve: TC = 1000 + 100Q. If the firm is a profit maximizer or loss minimizer, what output and price should it plan for?
What will be an ideal response?
If the multiplier is 6 and exports decrease by $30, what impact will that have on aggregate expenditure? Aggregate expenditure will
a) increase by $30 b) increase by $180 c) decrease by $30 d) decrease by $180
Choose the letter of the diagram in Figure 3.1 that best describes the type of shift that would occur in each situation for the market listed on the left, ceteris paribus. Figure 3.1 Shifts of Supply and Demand Steel: the government introduces environmental restrictions on the dumping of wastes from producing steel.
A. A. B. B. C. C. D. D.