Classical employment theory holds that
A) wages are flexible upward and downward in the long run.
B) an excess of saving over investment (a surplus in the loanable funds market) at any given interest rate will cause the interest rate to fall.
C) unemployment will cause wages and prices to decline.
D) All of the choices are true of classical employment theory.
Correct Answer:
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Q55: Suppose our economy is in macroeconomic equilibrium
Q56: The aggregate demand curve shows a(n)
A)positive relationship
Q57: Classical economists believed that
A)if saving exceeded investment,prices
Q58: A curve depicting the relationship between the
Q59: The Keynesian point of view suggests that
A)supply
Q61: The classical macroeconomic model argues that the
Q62: Keynesians tend to believe that
A)laissez-faire policies stabilize
Q63: Aggregate demand will decrease when there are
A)decreases
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