Exam 9: Classical Macroeconomics and the Self Regulating Economy

The structural unemployment rate is 2.3 percent,the frictional unemployment rate is 2.4 percent,and the current unemployment rate is 4.1 percent.The economy is in

Which of the following statements is true?

If the SRAS curve intersects the AD curve to the right of Natural Real GDP,the economy is

Exhibit 9-4 -Refer to Exhibit 9-4.Which of the following is true at the Real GDP level of Q₃?

According to classical economists,Say's law applies to a barter economy,but it does not apply to a money economy.

Suppose the natural unemployment rate is 5 percent.Which of the following observations is consistent with an economy that is self-regulating?

If Real GDP is less than Natural Real GDP,then the (actual)unemployment rate is

According to the classical economists,which of the following statements is false?

When the current state of the economy is such that Real GDP is less than Natural Real GDP,the economy is in a(n)____________________ gap. In this situation,the (actual)unemployment rate is ___________ than the natural unemployment rate,and there is a ________________ in the labor market.

If the current unemployment rate is less than the natural unemployment rate,then the economy is

Suppose AD and SRAS intersect to the right of LRAS.Which of the following is true?

Classical economics refers to an era in the history of economic thought that stretched from about

The classical economists felt that saving would be equal to investment because

Exhibit 9-7 -Refer to Exhibit 9-7. Which point is representative of the economy on its LRAS curve?

When there is a recessionary gap,(actual)Real GDP is __________ Natural Real GDP,and the (actual)unemployment rate is __________ the natural rate of unemployment.

Suppose the economy is self-regulating and the (actual)unemployment rate is less than the natural unemployment rate.This means that the economy is producing a level of output

If the economy is self-regulating and in a recessionary gap,what happens?

If the structural unemployment rate is 3 percent,the frictional unemployment rate is 3 percent,and the current unemployment rate is 5 percent,then the economy is in a recessionary gap.

Explain the policy implications of the classical economists' beliefs.

Exhibit 9-7 -Refer to Exhibit 9-7. Which point is representative of the economy with an unemployment rate that is greater than the natural unemployment rate?