Classical economists believed that
A) if saving exceeded investment,prices and interest rates would rise as business accumulated unwanted inventories.
B) flexible prices and wages could not restore an economy to full employment if the interest rate were rigid.
C) flexible interest rates,wages,and prices would assure full employment.
D) voluntary unemployment reflected economic inefficiency.
E) all unemployment was involuntary.
Correct Answer:
Verified
Q52: Unintended inventory changes
A)precipitate explosive inflations of highly
Q53: The principal cause of the Great Depression
Q54: Which of the following is incorrect?
A)As the
Q55: Suppose our economy is in macroeconomic equilibrium
Q56: The aggregate demand curve shows a(n)
A)positive relationship
Q58: A curve depicting the relationship between the
Q59: The Keynesian point of view suggests that
A)supply
Q60: Classical employment theory holds that
A)wages are flexible
Q61: The classical macroeconomic model argues that the
Q62: Keynesians tend to believe that
A)laissez-faire policies stabilize
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