Economics

Which of the following statements about the classical model of the eco

Which of the following statements about the classical model of the economy is FALSE? A) Individuals pursue the public interest, not their own self-interest. B) The economy will always move toward, or be at, full employment. C) Savings and investment will always be equal. D) Wages and prices are flexible.   ANSWER A

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Date: September 2nd, 2020

We draw the long-run aggregate supply curve as a vertical line to refl

We draw the long-run aggregate supply curve as a vertical line to reflect the fact that A) changes in the price level do not alter the level of long-run real GDP after full adjustment has occurred. B) an accurate depiction of the production possibilities curve is vertical after full adjustment has occurred. C) technology and […]

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Date: September 2nd, 2020