If We Compare the Classical Model with the Imperfect-Information Model

question 9

Multiple Choice

If we compare the classical model with the imperfect-information model of the aggregate supply curve by Lucas, we can conclude that

• A)deviations from the full-employment level of output are possible in both models
• B)there is never any deviation from full employment in either of the models since both assume flexible wages
• C)in both cases nominal wages and prices always change proportionally, even in the short run, and therefore markets always clear immediately
• D)only the Lucas model explains why wages tend to be rigid even over an extended time period
• E)none of the above

Grasp the roles and importance of the Executive Office of the President (EOP) and White House staff.

Understand the function and implications of executive orders.

Explore the effects of the War Powers Resolution of 1973 on presidential and congressional relations.

Examine the expansion of the presidential institution and its effects on presidential isolation and interaction.

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Definitions:

Sigmund Freud

An Austrian neurologist who is known for founding psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Kinsey

Refers to Alfred Kinsey, an American biologist known for his research into human sexuality in the mid-20th century.

Masters and Johnson

Pioneering sex researchers who studied human sexual response and sexual disorders in the mid-20th century.

Ethnocentric Fallacy

The mistaken belief that the worldview of one's own culture is central and correct while those of other cultures are deviant or inferior.