Once a firm has selected a price for its product, quantity is decided by consumers and their demand curves

According to classical macroeconomists, prices adjust ________ to shocks, so the government should ________

A) slowly; do little B) rapidly; do little C) rapidly; fight recessions D) slowly; fight recessions

When President Harry Truman said that he wanted to find a one-armed economist because his economic advisors always said, "On the one hand... and on the other hand... " he recognized that the advice of economists is often open to more than one interpretation. Why is this? a. Economists cannot make up their minds on policy matters

b. Economists agree with each other on all policy issues. c. Economists are aware that tradeoffs are involved in most policy questions. d. Economists are often unable to identify the critical questions involved in policy issues.