Question
According to classical economic theory, which of the
following mechanisms ensures that the economy naturally tends towards full employment?Solution
Classical economists believe that wages and prices are flexible and will adjust to clear markets. If there is unemployment, wages will fall, leading to increased demand for labor and eventually full employment. This is in contrast to Keynesian economics, which emphasizes the role of government intervention to achieve full employment.
X = 10Y+9 and Y = DX+8 are two regression equations of X on Y and Y on X respectively. Which of the following is true always regarding D
Which of the following statements is not true regarding BIS?
The optimal quantity of the Public good to be produced is given by
Which new feature was introduced in Japan’s banknotes to deter counterfeiters?
Which of the following statements about a firm's average cost curves is false?
The Ricardian Equivalence Theorem suggests that a budget deficit financed by issuing government bonds will have no effect on aggregate demand. This theo...
Within a country, the domestic price of a product will equal the world price if
Consider a fractional reserve banking system with a legally required reserve-deposit ratio of m. Suppose that an individual deposits ID dollars in one ...
If r xy = 0, then:
When R2 = 0, the estimated line (SRF) lies
