International influences have become relatively ________ important for the U.S. economy in recent decades, as we become a more ________ economy

Which of the following characterizes the classical view of the economy?

a. The economy is inherently unstable. b. Prices and wages are not flexible. c. The economy will "self-adjust" to full employment. d. None of these.

The equation now called the ______________ starts with a 2 percent real interest rate, and then instructs the Fed to lower the interest rate in proportion to any recessionary gap and to raise it in proportion to any excess of inflation above 2 percent.

A. Taylor rule B. rule of 70 C. Spencer’s rule D. None of the above is correct.