Most of the unemployment during the Great Depression was cyclical unemployment

The real business cycle model begins with the assumption that ________

A) wages and prices are sticky B) wages and prices are completely flexible C) the velocity of money is a constant D) nominal variables are superior to real variables in describing economic activity

Adverse selection arises in insurance markets because

a. insurance buyers have more information than insurance sellers. b. insurance sellers have more information than insurance buyers. c. individuals can select which insurance company to patronize. d. insurance companies can exercise too much control over whom they insure.