External balance refers to
A) an economy which is on its LM curve.
B) an economy which is on its IS curve.
C) an economy which is on its BP curve.
D) All of the above.
C
Economics
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Why is there NO persistent unemployment in the classical model?
A) Unionization creates job security for workers. B) The wage level adjusts to eliminate unemployment. C) The interest rate adjusts to eliminate unemployment. D) The rate of economic growth is always high enough to allow those who want to work at current wages to find jobs.
Economics
In the basic closed-economy ISLM model, the goods market can be described by the
A) consumption function. B) investment function. C) government spending and tax. D) goods market equilibrium condition. E) all of the above.
Economics