According to the new classical view, changes in aggregate demand
a. can temporarily influence output
b. affect only the aggregate price level.
c. can influence output but at the cost of higher inflation.
d. are primarily driven by changes in investment.
e. Both a and c
E
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________ is a problem that occurs when one concludes that a change in variable X caused a change in variable Y when in actual fact, it is a change in variable Y that caused a change in variable X
A) Reverse causality B) The positive-to-negative relationship C) Nonlinear slope D) The omitted variable
Which of the following groups tend to have lower unemployment?
a. younger workers b. middle-aged workers c. women d. those with less education
A severe and prolonged recessionary phase of a business cycle is sometimes described as
a. an inverted peak b. a trough c. a recession d. a depression e. nominal GDP
Which of the following assessments is correct based on the information presented in Exhibit 3?
a. Calvin has an absolute advantage in food production.
b. Calvin has a lower opportunity cost in cloth production.
c. Wendy has a higher opportunity cost in food production.
d. Wendy has a comparative advantage in cloth production.