The function of the interest rate in the Classical model was to keep the economy at full employment equilibrium by assuring that
A) actual saving equaled actual investment.
B) actual saving equaled desired investment.
C) desired saving equaled desired investment.
D) desired saving equaled actual investment.
A
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Ceteris paribus, Real GDP and the unemployment rate are
A) directly related. B) inversely related. C) unrelated. D) directly related when GDP is below its natural level and inversely related when GDP is above its natural level.
According to real business cycle theorists, if the long-run aggregate supply (LRAS) curve shifts to the left, Real GDP __________, the price level __________, the demand for labor __________, money wages __________, real wages __________, and workers choose to work __________
A) falls; falls; rises; fall; fall; less B) falls; rises; rises; fall; rise; more C) falls; rises; falls; fall; fall; less D) rises; rises; falls; fall; rise; more E) rises; falls; rises; fall; fall; more
A rational decision is one that
A. satisfies all desires. B. avoids the intentional allocation of resources. C. assigns available resources in the manner most preferred by decision makers. D. assigns available resources to the uses with the lowest opportunity costs.
What do we mean when we say that some technological knowledge is not proprietary?