Multiple Choice
Classical economists believe that the economy
A) requires activist government intervention to reach its potential level of GDP.
B) is self-regulating and does not require government intervention.
C) can be affected by only monetary policy.
D) is persistently below its potential level of GDP.
Correct Answer:
Verified
Correct Answer:
Verified
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Q10: The impulse leading to business cycles in
Q11: Keynesians and monetarists believe that economic fluctuations
Q12: The growth rate of productivity is a
Q13: If the Fed increases the quantity of
Q15: The presence of imports _ the size
Q16: The multiplier effect<br>A) is nonexistent in the
Q17: Business cycles result when<br>A) aggregate demand grows
Q18: A recessionary gap occurs when<br>A) the short-run
Q19: If the economy is at the natural