Multiple Choice
The Classical assumptions of the macroeconomy include each of the following except
A) wages and prices are fully flexible.
B) expectations are consistent with full employment.
C) the labor market can be out of equilibrium causing involuntary employment.
D) shocks to aggregate demand will change the composition but not the level of GDP.
Correct Answer:
Verified
Correct Answer:
Verified
Q30: The Keynesian assumptions of the macroeconomy include
Q31: Net exports will _ if _ increase(s).<br>A)
Q32: Net exports will _ if _ increase(s).<br>A)
Q33: The cost of hiring the last worker
Q34: A business invests because its managers believe
Q36: In a full employment economy, the real
Q37: If the value of C<sub>y</sub>, the MPC,
Q38: Other determinants of consumption spending include each
Q39: In the model developed in the text,
Q40: In the model developed in the text,