« previous next »

Author Question: The new classical model has as its central idea that A) workers and firms have rational ... (Read 87 times)

B

  • Hero Member
  • *****
  • Posts: 570
on: Jun 29, 2018
The new classical model has as its central idea that
 
  A) workers and firms have rational expectations.
  B) wage and price stickiness explain fluctuations in real GDP.
  C) shifts in aggregate demand have no impact on real GDP.
  D) the Federal Reserve should adopt a monetary growth rule.

Question 2

Do the assumptions of the perfectly competitive model describe all real-world markets? Explain.
 
  What will be an ideal response?


Hdosisshsbshs

  • Sr. Member
  • ****
  • Posts: 315
Reply #1 on: Jun 29, 2018
Answer to Question 1

A

Answer to Question 2

No, the assumptions of perfect competition do not always hold in real-world markets. There are cases where the market fails to produce an efficient outcome. This situation can be due to a number of reasons such as imperfect competition or externalities.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Approximately one in four people diagnosed with diabetes will develop foot problems. Of these, about one-third will require lower extremity amputation.

Did you know?

Computer programs are available that crosscheck a new drug's possible trade name with all other trade names currently available. These programs detect dangerous similarities between names and alert the manufacturer of the drug.

Did you know?

There are major differences in the metabolism of morphine and the illegal drug heroin. Morphine mostly produces its CNS effects through m-receptors, and at k- and d-receptors. Heroin has a slight affinity for opiate receptors. Most of its actions are due to metabolism to active metabolites (6-acetylmorphine, morphine, and morphine-6-glucuronide).

Did you know?

Methicillin-resistant Staphylococcus aureus or MRSA was discovered in 1961 in the United Kingdom. It if often referred to as a superbug. MRSA infections cause more deaths in the United States every year than AIDS.

Methicilli ...
Did you know?

Side effects from substance abuse include nausea, dehydration, reduced productivitiy, and dependence. Though these effects usually worsen over time, the constant need for the substance often overcomes rational thinking.

A model for recessive epistasis A model for recessive epistasis
The central nervous system The central nervous system
Eye Model Eye Model
Theodore Brookhart and Egmont C. Arens, "Streamliner" Meat Slicer, Model 410. Theodore Brookhart and Egmont C. Arens, "Streamliner" Meat Slicer, Model 410.
The Milestones of Adjustment Post-Psychosis model outlines a four-phase trajectory from a psychotic ... The Milestones of Adjustment Post-Psychosis model outlines a four-phase trajectory from a psychotic ...
The operon model, as proposed in 1961 by Jacob and Monod The operon model, as proposed in 1961 by Jacob and Monod
Video: Glycolysis - Introduction to ATP and the burning of sugar

For a complete list of videos, visit our video library