Classical economists believe that ________
A) it takes a long time for economic variables to reach equilibrium
B) short-run fluctuations are too infrequent and mild to be of much interest
C) real variables like output and investment are not determined by nominal variables
D) all of the above
E) none of the above
C
You might also like to view...
The most common measure of productivity shocks used by real business cycle theorists is
A) the Solow residual. B) average labor productivity. C) the change in the capital stock. D) unit labor costs.
Marginal utility is defined as:
a. the extra satisfaction the consumer receives from an extra $1 of income. b. the total level of satisfaction a consumer receives upon the consumption of a certain number of goods. c. the number of hours a consumer would be willing to work to receive a certain product. d. the extra satisfaction a person derives from consuming an additional unit of a good. e. a comparison of the utility a good provides with the price of that good.