If national income is equal to zero, then consumption must also be equal to zero

Classical economists think that the government ________ use fiscal policy to dampen the business cycle because prices and wages adjust ________

A) should not; rapidly B) should not; slowly C) should; slowly D) should; rapidly

Refer to Table 2-9. If the two countries specialize and trade, who should export sailboats?

A) There is no basis for trade between the two countries. B) Guatemala C) Honduras D) They should both be importing sailboats