The neoclassical perspective argues that, in the long run, the economy will adjust back to its potential GDP level of output through ______________ price levels.

a. flexible
b. fixed
c. restricted
d. downward


a. flexible

Economics

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What will be an ideal response?

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All of the points on a budget line result in combination of goods that expend all of her income.

Answer the following statement true (T) or false (F)

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Give two reasons why GDP does not reflect total production in an economy

What will be an ideal response?

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When the government budget deficit increases, national saving decreases

a. True b. False Indicate whether the statement is true or false

Economics