Author Question: If an economy initially starts away from the steady state ________. A) output will gradually fall ... (Read 129 times)

lbcchick · **on:** Jun 30, 2018

If an economy initially starts away from the steady state ________.

A) output will gradually fall over time
B) the economy will converge to the steady state in the long-run
C) consumption spending must be greater than investment spending
D) consumption spending must rise

Question 2

To classical economists, it is always true that

a. there is zero unemployment.
b. actual output is always equal to potential output.
c. excess demand for goods is possible unless prices are forced to fall.
d. the marginal product of labor exceeds the real wage.