The classical model differs from the Keynesian model in that
a. monetary policy does not impact output in the Keynesian model.
b. the classical model focuses on the long-run and the Keynesian model focuses on the short-run.
c. fiscal policy is more powerful in the classical model than in the Keynesian model.
d. the classical model believes monetary policy is a powerful impact on output and fiscal policy is not.
e. None of the above
B
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Refer to Figure 4.1, which shows Molly's and Ryan's individual demand curves for compact discs per month. Assuming Molly and Ryan are the only consumers in the market, if the market quantity demanded is 15, the price must be
A) $0. B) $6. C) $9. D) $15.
Which of the following situations will arise in the domestic market following the removal of an import quota?
A) imports increase, domestic production increases, prices increase B) imports decrease, domestic production decreases, prices increase C) imports decrease, domestic production increases, prices decrease D) imports increase, domestic production decreases, prices decrease