Multiple Choice
The Classical assumptions of the macroeconomy include each of the following except
A) wages and prices are fully flexible.
B) expectations are volatile and can take many forms.
C) the labor market is always in equilibrium with full employment.
D) shocks to aggregate demand will change the composition but not the level of GDP.
Correct Answer:
Verified
Correct Answer:
Verified
Q76: Other determinants of consumption spending include each
Q77: Other determinants of consumption spending include each
Q78: The baseline level of consumption (C<sub>0</sub>)<br>A) is
Q79: If C<sub>0</sub> is $2 trillion, C<sub>y</sub> is
Q80: If C<sub>0</sub> is $1 trillion, C<sub>y</sub> is
Q82: Government transfer payments show up in the
Q83: In the United States today, investment spending
Q84: If C<sub>0</sub> is $1 trillion, C<sub>y</sub> is
Q85: In the National Income and Product Accounts,
Q86: The Keynesian assumptions of the macroeconomy include