According to classical economics,
A) the economy moves to full employment in the long run
B) the economy is always at full employment in the short run
C) the economy is rarely at full employment
D) business cycles explain long-run fluctuations in the economy
E) the economy is at full employment in the short run,but in the long run,business cycle movements lead the economy away from full employment
Correct Answer:
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Q14: What major historical event led to the
Q15: Which of the following statements about modern
Q16: A critical assumption in the classical model
Q17: Which of the following is more of
Q18: A critical assumption in the classical model
Q20: The classical model
A) is another name for
Q21: The labor supply curve shows
A) how much
Q22: If the actual real wage exceeds the
Q23: Markets clear
A) in the short run
B) when
Q24: The classical model
A) relies on the equivalency
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