With respect to unemployment, the classical model states that
A) unemployment of any kind cannot exist.
B) involuntary unemployment will always exceed voluntary unemployment.
C) unemployment fluctuates with the interest rate.
D) only voluntary unemployment exists.
D
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Everything else held constant, a decrease in the cost of production ________ aggregate ________
A) increases; demand B) decreases; demand C) increases; supply D) decreases; supply
If government is to allocate resources efficiently, _____
a. competition among local governments should be limited in scope b. local governments should transfer powers to state governments whenever possible c. public goods should always be provided by the federal government d. public goods should be devolved to local governments whenever feasible
Other things the same, which of the following would cause the exchange rate to rise?
a. both an increase in the interest rate and an increase in foreign demand for U.S. goods and services. b. an increase in the interest rate, but not an increase in foreign demand for U.S. goods and services. c. an increase in foreign demand for U.S. goods and service, but not an increase in the U.S. interest rate. d. neither an increase in the U.S. interest rate nor an increase in the demand for U.S. goods and services.
The capture hypothesis suggests that
A. the firms being regulated will unduly influence the regulators. B. marginal cost regulation is superior to average cost regulation. C. regulation will lead to over-entry and eventual losses for firms in the industry. D. the well-focused interests of consumers will lead to the over-regulation of most industries.