The classically-based models (classical, new classical, ...

[Arii_bell]

The classically-based models (classical, new classical, monetarist, real business cycle) all agree that
 
  a. markets always clear.
  b. monetary policy can affect output in the short-run but not the long-run.
  c. changes in aggregate drive most changes in output.
  d. stabilization policy is ineffective.
  e. None of the above

Question 2

Some economists argue that unemployment compensation increases the natural rate of unemployment because it increases the amount of time people spending finding new work while without work.
 
  Additionally, it makes unemployment more visible with the steady growth in urbanization. Indicate whether the statement is true or false

[ebonylittles]

Answer to Question 1

D

Answer to Question 2

True

[Arii_bell]

Thank you

[ebonylittles]

Happy to help you