Which of the following statements is inconsistent with Classical Theory? A.The economy will eventually produce at the full-employment level of output. B.The economy is self-regulating. C.The economy has an environment of “invisible hand”. D.The economy has inflexible wages and prices.

What is an assumption of a Neoclassical model? a. The future is uncertain b. Output increases when demand in the economy increases c. There is full employment in the economy d. Governments should have a balanced budget   Answer correct and explain within 30 mins will give you positive feedback.

According to classical economists: A.wages, prices and interest rates are flexible. B.only nominal wages and prices are flexible. C.the recessionary gaps create a shortage of unemployed workers. D. an inflationary gap creates a surplus of unemployed workers.

Neoclassical economics does NOT argue _______ Question 1 options: GDP is determined by supply factors such as resources and technology, not aggregate demand government regulation is generally good for the overall economy the market system has the self-adjusting mechanism that fixes unemployment and recession in the long run as long as wages, prices, and interest rates are flexible raising minimum wage generally creates unemployment

The Great Depression undermined the credibility of the classical view. Correspondingly, the high rates of inflation and unemployment during the 1970s undermined the Keynesian view. Can you explain why both of these phenomena occurred?

In the (neo) classical theory, prices are “market-based”(firms take prices) and “demand-determined”. Discuss.

According to the views of the Classical economists, if the money supply doubles,    A. money prices will be halved    B. real income will double.    C. level of investment will double.   D.There will be no effect on relative prices.