The income-expenditure model focuses on changes in price levels

Which of the following explains the ability of the U.S. economy to avoid diminishing marginal returns and experience accelerating growth in the early to mid-20th century?

A) immigration B) additions of a greater amount of capital of the same quality C) a decrease in the quality of labor D) continuing technological change

One of the primary objections to the new classical model is that ________

A) firms could easily get information about price movements and so would not be fooled for very long B) price is negatively related to quantity demanded, but positively related to quantity supplied C) business cycles are relatively brief in duration D) it failed to incorporate rational expectations into its presentation