Moving along which curve does the money wage rate and the price level change in the same proportions?

Countries with high labor costs tend to:

a. rely on only one method for the production of goods b. use more labor rather than capital in the production process. c. use more capital rather than labor in the production process. d. be relatively poor countries.

The new classical school holds that: a. macroeconomic equilibrium is achieved only through active government intervention. b. unemployment is only temporary, because the economy tends naturally toward equilibrium. c. rigid prices and wages prevent the economy from achieving equilibrium. d. macroeconomic equilibrium cannot occur as long as the aggregate supply curve isvertical

e. rational expectations result in involuntary unemployment and prolonged periods of macroeconomic disequilibrium.