The self-correcting mechanism would be expected to be very rapid in an economy with
A. a large multiplier.
B. flexible prices.
C. rigid wages.
D. high labor productivity.
Answer: B
Economics
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Refer to the table above. What is the equilibrium quantity of notebooks?
A) 4 units B) 10 units C) 20 units D) 12 units
Economics
According to adaptive expectations theory, expansionary monetary and fiscal policies to reduce the unemployment rate are:
A. useless in the long run. B. useless in the short run. C. ineffective on the price level. D. successful at achieving the desired outcomes.
Economics