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1. Which of the following characterizes the classical view of the economy?
A. The economy will "self-adjust" to full employment.
B. The economy is inherently unstable.
C. Prices and wages are not flexible.
D. None of these.
2. For an economy, aggregate demand equals:
1. Consumption plus investment plus government spending plus exports.
2. Consumption plus investment plus government spending plus (exports minus imports).
3. Consumption plus investment plus (taxes minus transfers) plus (exports minus imports).
4. Consumption plus investment plus government spending plus net exports (imports minus exports).
In terms of trading bloc characteristics, how does the EU (European Nation) compare with the 50 States in the U.S. ?
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