Which of the following statements is correct with respect to the debate between the Keynesians and new classical economists?
a. Each side criticized monetarism
b. The key source of disagreement centered on how people form their expectations.
c. Both models believed that recessions were characterized by falling aggregate demand.
d. Both believed that unanticipated changes in monetary policy could influence output.
e. all of the above.
E
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Other things being equal, demand is less elastic
A) the more expensive the good is. B) the smaller the percentage of a total budget that a family spends on a good. C) the longer is the time period for adjustment. D) the more substitutes a good has.
Three established firms—Cobb, Urban, and Sing—are in business in the United States. Which of the following events suggests that an oligopoly exists in their industry?
a. Two new competitors enter the industry after Urban raises its output. b. Cobb and Urban suffer a sales loss after Sing lowers its prices. c. Cobb make its business plan without paying attention to Urban or Sing. d. Sing suffers a sales loss after Cobb raises its prices.