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 is always in equilibrium with full employment.
D) shocks to aggregate demand will change the composition and the level of GDP.
Correct Answer:
Verified
Correct Answer:
Verified
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Q49: Some of the variables on which net
Q50: The investment function is<br>A) I<sub>0</sub> + I<sub>r</sub>
Q51: Each of the following is a key
Q52: The flexible-price assumption means that<br>A) prices and
Q54: The value of C<sub>y</sub>, the MPC,<br>A) is
Q55: Net exports will _ if _ increase(s).<br>A)
Q56: Governments seeking to boost investment spending<br>A) can
Q57: The present value of an investment project
Q58: In the Classical Model, if the quantity