Classical economists thought that
A. flexible wages and prices were the principal causes of recessions.
B. the Great Depression confirmed their view of the business cycle.
C. government policies and spending were needed to keep the economy at full employment.
D. ?price, wage, and interest rate flexibility can quickly cure any tendencies for a recession.
Ans; D. ?price, wage, and interest rate flexibility can quickly cure any tendencies for a recession.
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Which of the following transactions directly leads to a surplus on the U.S. capital and financial account?
A) An American purchases a share of stock on the Tokyo exchange. B) An American sells wheat to an African nation. C) A Japanese resident purchases a U.S. government bond. D) A resident of France visits the United States.
On the long-run aggregate supply curve
A) an increase in the price level reduces the aggregate quantity of GDP supplied. B) an increase in the price level has no effect on the aggregate quantity of GDP supplied. C) an increase in the price level increases the level of potential GDP. D) an increase in the price level increases the aggregate quantity of GDP supplied.