Critics of the New Classical Macroeconomics Argue That

question 13

Multiple Choice

Critics of the new classical macroeconomics argue that

• A) the necessary information for firms to formulate rational expectations is not generally available.
• B) deviations from the natural rate of unemployment are too small and transitory to have resulted from purely unexpected events.
• C) the theory neglects the slow and adaptive manner in which wages and prices adjust, thus extending the duration of a business cycle.
• D) markets clear too rapidly and continuously for individuals and firms to plan effectively.
• E) the natural rate of unemployment stated in the assumptions of the new classical macroeconomic theory is too high to be of much use to policy makers.

Understand the concept of delegation and its significance in organizational processes.

Grasp the principles of organizing within a company, such as parity principle, unity of command, and chain of command.

Recognize the importance of the span of control and how it affects managerial effectiveness.

Identify the advantages of delegating authority and empowering employees.

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Definitions:

Paper Manufacturer

A company or entity engaged in the production of paper products, from raw materials to finished goods.

Forestry Company

A business involved in the cultivation, maintenance, conservation, and management of forests for resources such as timber.

Vertical Integration

An approach in which a firm grows by incorporating various stages along the same production line, including situations where a producer controls its supply source and/or its distribution channel.

Resource Dependence

A theory asserting that organizations depend on resources from their environment and must manage dependencies and relationships with those who control those resources.