"In the classical model, the equilibrium level of real Gross Domestic Product (GDP) is completely supply-determined." Do you agree or disagree? Why?
What will be an ideal response?
Agree. The long-run aggregate supply curve is vertical, so the equilibrium level of real Gross Domestic Product (GDP) is determined by the location of the aggregate supply curve. Shifts in aggregate demand affect only the price level.
Economics
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In an open economy, private saving, , is equal to
A) I - CA + (G - T). B) I + CA - (G - T). C) I + CA + (G - T). D) I - CA - (G - T). E) I + CA + (G + T).
Economics
What would be the Nash equilibrium of this game?
a. Bargain hard, bargain hard b. Firm bargains hard, union accommodates c. Union bargains hard, firm accommodates d. Both B&C
Economics