Traditional classical economists believe that:
a. wage rates are perfectly flexible.
b. people do not have perfect information about the economy.
c. prices are fixed for long periods of time.
d. the price of resources, technology, and expectations cannot influence the equilibriumlevel of real GDP

The idea that a $1 increase in infrastructure spending will generate more than $1 in economic growth is a representation of

A) the multiplier effect. B) an automatic stabilizer. C) an outside lag. D) an inside lag.

The empirical data indicate that in the short run exchange rates are much more variable than inflation differentials

Indicate whether the statement is true or false