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Unformatted text preview: e chosen not to work at the prevailing wage rate. D) all of the above Answer: D Diff: 1 Topic: The Classical View of the Labor Market Skill: Fact 30) Accordin Classical theory, an expansionary monetary policy ________the price level and ________ output in the g to the long run. A) decreases; B) increases increases; C) doesn't change increases; D) increases doesn't change; doesn't change Answer: B Diff: 1 Topic: The Classical View of the Labor Market Skill: Fact 31) Assume that the percentage of the labor force covered by labor contracts that set wages for a predetermined period of time increases. This will tend to A) decrease the B) effectiveness of both monetary and fiscal policy to change output. increase the C) effectiveness of both monetary and fiscal policy to change output. increase the D) effectiveness of fiscal policy, but decrease the effectiveness of monetary policy to change output. have no impact on the effectiveness of either monetary or fiscal policy to change output. Answer: B Diff: 2 Topic: The Classical View of the Labor Market Skill: Analytic AACSB: Analytic Skills 32) Accordin g to the classical economists, those who are not working A) have chosen not to work at the market wage. B) are too C) productive to be hired at the current wa...
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This note was uploaded on 06/02/2013 for the course ECON 130 taught by Professor Meshew during the Fall '13 term at Victoria Wellington.
- Fall '13