Multiple Choice
All the following are assumptions of the classical model EXCEPT
A) pure competition exists.
B) buyers and sellers react to nominal money prices rather than to relative prices.
C) people are motivated by self-interest.
D) wages and prices are flexible.
Correct Answer:
Verified
Correct Answer:
Verified
Q220: Which of the following is NOT a
Q221: All items below will decrease short-run aggregate
Q222: Assume equilibrium real GDP per year is
Q223: According to classical theory, full employment in
Q224: If short-run aggregate supply is upward sloping,
Q226: According to modern Keynesian analysis, an increase
Q227: Long-run unemployment in the classical model is
Q228: At higher rates of interest<br>A) households save
Q229: The first systematic attempt to explain the
Q230: Oil prices increased significantly in 2008. According