Which of the following is the most likely cause of most recessions according to the new classical model?

a. a change in the money supply.
b. an increase in taxation and government spending.
c. a fall in expected profits.
d. a rise in the price of oil.
e. an unanticipated change in the money supply.

E

Economics

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Refer to Figure 14.1. The substitution effect of the wage increase on the amount of hours of leisure is:

A) L1 to L0 B) L1 to L2. C) L0 to L2. D) L0 to L1. E) none of the above

Economics

Collusion is:

A. legal in the United States. B. more likely in industries with a large number of firms. C. not possible when firms interact repeatedly forever. D. None of the answers is correct.

Economics