Classical economists think general equilibrium is attained relatively quickly because
A) the real interest rate adjusts quickly.
B) the level of output adjusts quickly.
C) the real wage rate adjusts quickly.
D) the price level adjusts quickly.
D
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Neoclassical growth theory is based on the proposition that real GDP per person grows when
A) the population growth rate increases. B) the population growth rate decreases. C) technological advances occur. D) saving decreases.
When Brazil can generate a product using fewer labor hours and resources than the United States, an economist would say that Brazil had:
A. a comparative advantage in production of the product. B. an absolute advantage in production of the product. C. a higher opportunity cost of producing the product. D. no incentive to import the product, regardless of the cost-price conditions for other products.