The Classical view of the economy is characterized by:
a) A laissez-faire approach.
b) The belief that demand creates its own supply.
c) Overt fiscal policy.
d) The inherent instability of the economy.
Answer: a) A laissez-faire approach.
Economics
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Briefly explain how growth in real GDP differs across economies including the United States, Japan, Africa, Central America, Hong Kong, Korea, and Singapore
What will be an ideal response?
Economics
In the Mundell-Fleming model, regardless of whether the economy has perfect capital mobility or not, an increase in the money supply
a. reduces interest rates . b. increases income. c. decreases the trade balance. d. increases capital inflows.
Economics