A. wages and prices are sticky
B. wages and prices are flexible
C. the economy may operate below full capacity
D. the economy is always at full capacity
E. A and C
F. B and D
Related Mcqs:
- The regarding the new classical macroeconomics is hoe realistic is the assumption ?
A. that monetary policy affects aggregates demand
B. that markets do not clear quickly
C. that fiscal policy affects aggregate demand
D. of rational expectations. - The Keynesian model is a good guide to ____ behavior and the classical model describes behavior in ______?
A. long run, short run
B. flexible imperfect markets
C. short-term long run
D. long run, imperfect markets - The Heckscher-Ohl in model rules out the classical model’s basis for trade by assuming that _________ is (are) identical between countries?
A. factor endowments
B. factor intensities
C. technology
D. opportunity costs - The kinked demand curve model of oligopoly assumes the elasticity of demand ?
A. in response to a price increase is less elastic than the elasticity of demand in response to a price decrease
B. is perfectly elastic if price increases and perfectly inelastic if price decreases
C. is constant regardless of whether price increase of decrease.
D. in response to a price increases is more elastic than the elasticity of demand in response to a price decrease - The multiplier accelerator model assumes ____ depends on ______?
A. consumption expected future profits
B. investment, interest rates
C. investment expected future profits
D. stock building interest rates - The marginal product model assumes that ?
A. individuals pay the full cost of their education
B. government subsidizes schooling
C. education persons migrate more
D. capital and unskilled labor are complements - Macroeconomics deals with?
A. the behavior of the electronics industry
B. the behavior of firms
C. economics aggregates
D. the activities of individual units - Macroeconomics is the study of ?
A. individual building blocks in the economy
B. the relationship between different sectors on the economy
C. household purchase decisions
D. the economy as a whole - The key issues of macroeconomics are ?
A. unemployment
B. inflation
C. economic growth
D. All of the above - In macroeconomics, equilibrium is defined as that point at which ?
A. aggregate output equals consumption minus investment
B. saving equals consumption
C. Planned aggregate expenditure equals aggregate output
D. planned aggregate expenditure equals consumption
