Classical macroeconomists believed that market-based economy

Reference no: EM13692431

1. Since the early 1980s, the U.S. current account has

A) been in near-balance in every year.

B) alternated between sizable deficits and surpluses.

C) been in deficit every year.

D) been in surplus every year.

2. Classical macroeconomists believed that a market-based economy has ________ self-correcting forces and thus ________ business cycles.

A) weak, mild and fleeting

B) strong, violent and prolonged

C) strong, mild and fleeting

D) weak, violent and prolonged

3. The first two years of the Great Depression were dominated by

A) rightward shifts of the LM curve.

B) upward shifts of the SAS curve.

C) leftward shifts of the IS curve.

D) leftward shifts of the LM curve.

E) rightward shifts of the IS curve.

4. The ________ effect is a destabilizing effect associated with a falling price level.

A) real balance

B) expectations

C) Keynes

D) Pigou

Reference no: EM13692431

Questions Cloud

What long-run adjustment should you expect : Suppose the demand and cost function for a monopolistically competitive firm are given by: Q=36-4Q,C(Q)=124-16Q+Q^2. Determine the profit maximizing price and level of output.

Profit-maximizing price-quantity combination : You are the manager of a monopoly and your demand and cost functions are given by P=300-3Q, C(Q)=1,500+2Q^2, respectively. What is the profit-maximizing price and output?

Demand plans and short-term costs for a particular product : A firm has the following demand plans and short-term costs for a particular product. Q = 200 -5p TC = 400 + 4Q. What price should the company sell their product? What will be the price and quantity if Bramwell wants to?

Classical macroeconomists believed that market-based economy : Classical macroeconomists believed that a market-based economy has ________ self-correcting forces and thus ________ business cycles. The first two years of the Great Depression were dominated by

What was the rationale for that decision : Do corporations have responsibility in the financial meltdown and its aftermath of recession – the most serious since the Great Depression of 1930s? Free-market capitalism dictates that markets create efficient solutions and businesses that fail shou..

Outward or inward shift in relevant demand curve for housing : The demand for housing its often described as being highly cyclical and very sensitive to housing prices and interest these characteristics describe the effect of each of the following in terms of whether it would increase or decrease the quantity de..

Economy has such a large trade deficit : Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4 ..

User Account

All Pages