Unit_06_-_Chap_11_Quiz

Unit_06_-_Chap_11_Quiz - Points Awarded Points Missed...

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Points Awarded 10.00 Points Missed 0.00 Percentage 100% 1. Inflation that occurs when total spending is greater than the economy's ability to produce output at the existing price level is: A) Anticipated inflation B) Demand-pull inflation C) Cost-push inflation D) Unanticipated inflation Points Earned: 1.0/1.0 Correct Answer(s): B 2. One tenet of classical economics is that A) The role of the government should be limited, since the market will always be self-correcting B) The government should intervene whenever necessary to avoid any unemployment C) Wages and prices are sticky D) The government should set a minimum wage slighty above the natural market Points Earned: 1.0/1.0 Correct Answer(s): A 3. Flexible wages and prices was assumed by A) the classical economists. B) the Keynesian economists. C) modern economists. D) no economists. Points Earned: 1.0/1.0
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Correct Answer(s): A 4. Which of the following is not an assumption of the Classical Model? A) Wages and prices are flexible.
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Unit_06_-_Chap_11_Quiz - Points Awarded Points Missed...

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