Which of the following market models results in the highest price assuming a fixed number of firms with identical costs and a given demand curve?

According to new classical economists,

a. deficits should have a large and negative impact on output. b. deficits should have no discernable impact on output. c. deficits will have no impact on private consumption. d. growth in the 1990s was driven by falls in the deficit. e. None of the above

Which of the following is true about unemployment?

a. the benchmark high-employment level is most likely between 3 and 4 percent b. In recent years, the appropriate benchmark high-employment level has risen. c. Based on the experience of the 1960s, a 7 percent unemployment rate was too low to be sustained without a buildup of inflationary pressure d. During the 1970s, the benchmark high-employment level rose but this was not observed by economists at the time.