In the absence of a financial system, the two-period model without taxes predicts that
A) consumption is more volatile that output.
B) consumption is as volatile as output.
C) consumption is less volatile than output.
D) We do not know.
B
Economics
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Economic theory would anticipate that labor market distortions would reduce employment. Why isn't there greater evidence of this in developing countries?
What will be an ideal response?
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Microeconomics approaches the study of economics from the viewpoint of:
a. inflation, unemployment, and economic growth. b. the federal government. c. individual economic units, such as consumers, firms, and units of government. d. the economy as a whole.
Economics