Classical economists believe aggregate spending adjusts quickly to equal full-employment output.
Answer the following statement true (T) or false (F)
True
The classical view holds that no government intervention in the market is needed because the price level, wages, and interest rates will adjust and the economy will self-correct to restore full employment.
Economics
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The nominal interest rate is 7 percent and the expected inflation rate is 4 percent. The real interest rate is:
A) 10 percent. B) -2 percent. C) 3 percent. D) 4 percent.
Economics
As student reasons that "If I didn't go to class tonight, I would spend three hours at work where I earn $10 per hour. In addition, my annual parking permit costs the equivalent of $2 per day.". The opportunity cost to that student of attending that class this evening is: a. $0
b. $2. c. $30. d. $32.
Economics