The main reason why the traditional classical school ceased to be widely accepted was that:
a. it did not reflect the realities of the modern economy.
b. when Keynes received the Nobel Prize, the academic establishment started believinghis ideas
c. it could not explain the persistence of the high levels of unemployment seen during the Great Depression.
d. it was too abstract to be completely understood.
e. it could not explain the relationship between inflation and unemployment.
c
You might also like to view...
What resources can a firm change in the short run? In the long run?
What will be an ideal response?
Other things equal, an increase in aggregate supply will cause:
a. a decrease in equilibrium real GDP and a decrease in the equilibrium price level. b. an economic contraction. c. an increase in equilibrium real GDP and an increase in the equilibrium price level. d. cost-push inflation. e. a reduction in unemployment and a decline in inflation.
Under monopolistic competition, entry to the industry is
A. blocked. B. completely free of barriers. C. more difficult than under pure competition but not nearly as difficult as under pure monopoly. D. more difficult than under pure monopoly.
Enron was clearly a company riddled with fraud and its conduct drove it to bankruptcy. The text argues that individual behavior was not the core of Enron's problems. What were the problems with this corporation from an organizational architecture point of view?
What will be an ideal response?