Which of the following assumptions is crucial to the classical model but not the Keynesian model?
a. The real wage always equals the marginal product of labor.
b. Real wages are perfectly flexible.
c. nominal wages are perfectly flexible.
d. monetary policy primarily affects aggregate demand.
e. both b and c.
C
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The De Beers Company blocked competition
A) in the diamond market by controlling the output of most of the world's diamond mines. B) by controlling the supply of most of the world's high-quality bauxite, the mineral used to produce aluminum. C) in the market for fresh and frozen cranberries because it controls about 80 percent of the cranberry crop. D) because it has lower production costs than other department stores due to economies of scale.
The key difference between a forward and a futures contract is:
A. a forward contract is bought and sold on organized exchanges. B. a forward contract is customized where a futures contract is not. C. only the forward contracts have settlement dates. D. the amount of time involved.