Multiple Choice
One tenet of classical economics is that
A) the role of the government should be limited, since the market will always be self-correcting.
B) the government should intervene whenever necessary to avoid any unemployment.
C) wages and prices are "sticky downward."
D) the government should set a minimum wage slightly above the natural market equilibrium rate.
Correct Answer:

Verified
Correct Answer:
Verified
Q11: In the classical model, what is the
Q12: Consider the above figure. If the aggregate
Q13: Keynesian economists would likely argue that the
Q14: "Supply creates its own demand" implies that<br>A)
Q15: Which of the following will shift the
Q17: Which of the following statements is TRUE
Q18: An increase in aggregate demand will tend
Q19: The classical economists argued that planned saving
Q20: According to the classical economists, actual real
Q21: "Supply creates its own demand" is known