Author Question: The main reason why the traditional classical school ceased to be widely accepted was that: a. it ... (Read 23 times)

Kikoku · **on:** Jun 30, 2018

The main reason why the traditional classical school ceased to be widely accepted was that:
a. it did not reflect the realities of the modern economy.
b. when Keynes received the Nobel Prize, the academic establishment started believinghis ideas.
c. it could not explain the persistence of the high levels of unemployment seen during the Great Depression.
d. it was too abstract to be completely understood.
e. it could not explain the relationship between inflation and unemployment.

Question 2

The elasticity of supply coefficient for lobster is estimated to be equal to 0.6 . It is expected, therefore, that a 10 decrease in price would lead to:
a. a 6 decrease in the quantity of lobsters supplied.
b. a 6 increase in the quantity of lobsters supplied.
c. a 10 decrease in the quantity of lobsters supplied.
d. a 10 increase in the quantity of lobsters supplied.