An economy in which output has decreased and prices have decreased would suggest a:

Efficiency in a market occurs when the production of the good is such that

A) marginal benefit exceeds marginal cost. B) marginal benefit equals marginal cost. C) marginal benefit is lower than marginal cost. D) the marginal cost stops increasing. E) marginal benefit exceeds marginal cost by the maximum amount possible.

The classical model is a poor predictor of short-run economic fluctuations in part because it assumes that

a. all workers wish to work b. government will prevent these fluctuations c. the labor market always clears d. the long run is just a series of short-run periods e. labor demand curve is stable