The New Classical Macroeconomists Stress That Output Fluctuations and Unemployment

question 67

Multiple Choice

The new classical macroeconomists stress that output fluctuations and unemployment

• A) result from random errors and cannot be minimized by government stabilization policies.
• B) require rational government actions to reduce the gap between actual and potential output.
• C) will disappear if most large industries are nationalized.
• D) are absent in a free market capitalist economy.
• E) can be minimized if all sectors of the economy rationally expect high rates of inflation.

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Definitions:

Dependent Means

Dependent means refer to statistical analyses concerning means from related or paired samples, where the observation in one sample is influenced by or paired with the other.

Sample

A subset of a population. See Population.

Obtained Value

The specific result or number arrived at after conducting an experiment or calculation.

Critical Value

A point on the scale of the test statistic beyond which the hypothesis is rejected.