Exam 9: Classical Macroeconomics and the Self-Regulating Economy

If the economy is self-regulating,explain the correct sequence of events that occurs once the economy is in a recessionary gap to move the economy to long-run equilibrium.

The classical economists thought that wages,prices,and interest rates were flexible in both the upward and the downward direction.

Which of the following is consistent with the classical position on wages and prices?

Exhibit 9-5 -Refer to Exhibit 9-5.Picture an AD curve intersecting an SRAS curve at Point K on graph (1).Which point(s)would this correspond to on graph (2)?

If Real GDP is less than Natural Real GDP,the economy is in

The physical production possibilities frontier illustrates the different combinations of goods that society can produce given

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