Which of the following assumptions is found in Friedman's model but not in the new classical model?
A) Supply of labor depends on expected real wage.
B) Workers gradually adapt their expectations of the price level to the actual price level.
C) imperfect information
D) market-clearing labor market
B
You might also like to view...
The above figure shows the marginal benefit to a firm of polluting in the local river while producing its output, and the marginal cost to the firm's neighbor. The marginal cost of production is zero for the firm
If there is just one neighbor who owns the river, how much pollution is likely to occur? A) 0 units B) 500 units C) 1000 units D) more than 1000 units.
Noncontrollable expenditures are called "noncontrollable" because
A) they increase at the same rate as the public debt. B) they change without congressional action. C) only the president can approve these entitlement payments. D) the political process determines the size of the payments.