Which of the following statements is (are) correct? The new classical economics
a. questions the soundness of the Keynesian model, arguing that many of its relationships are not firmly based on individual optimizing behavior.
b. criticizes what it considers arbitrary assumptions of Keynesians concerning wage stickiness and consequent involuntary unemployment.
c. favors the rational expectations assumptions over formulations that assume that individuals form price expectations on the basis of past history of prices because the rational expectations hypothesis is consistent with individual optimizing behavior.
d. All of the above
e. None of the above
D
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Suppose the current unemployment rate is 15 percent. If it rises to 20 percent
A) the economy will move up along the production possibilities curve. B) the economy will move closer to the production possibilities curve. C) the production possibilities curve will shift inward. D) the economy will operate farther inside the production possibilities curve.
Which of the following defines monopoly?
A) Sherman Act B) Clayton Act C) Federal Trade Commission Act D) none of the above
A dollar's value can change:
A. over time. B. across different locations. C. Both of these statements are true. D. Neither of these statements is true.
What is the term for when the production possibilities curve shifts outward?