What are the inherent disadvantages of a barter ...

[future617RT]

What are the inherent disadvantages of a barter system?

Question 2

Which of the following statements accurately expresses the assumptions on which new Keynesian and new classical theory are based?
 a. New Keynesian economics assumes that the economy can reach equilibrium below thenatural rate of unemployment, whereas new classical economics assumes thatmacroeconomic equilibrium is always at the natural rate of unemployment.
 b. New Keynesian economics maintains that government intervention is unnecessary,whereas classical economics supports an active government role.
 c. New Keynesian economics assumes that the long-run Phillips curve is vertical,whereas new classical economics views the long-run Phillips curve as horizontal.
 d. New Keynesian economics assumes that all prices are flexible, whereas new classical economics applies a fixed-price model.
  e. New Keynesian economics emphasizes short-run reductions in inflation rates, whereas new classical economics focuses on short-run reductions in the unemployment rate.

[dudman123]

Answer to Question 1

In a barter system, the buyer may not have appropriate items of value to the seller. Barter is also inefficient because several trades may be necessary to receive the desired goods. In other words, barter requires a double coincidence of wants. Barter is also extremely expensive over long distances. It is time-consuming because of difficulties in determining the value of the product that is being offered for barter.

Answer to Question 2

a