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:

Sociologists

Scientists who study the development, structure, and functioning of human society, including social relationships, institutions, and behaviors.

Macrosociological Theorists

Sociologists who focus on the study of large-scale social structures and processes, as opposed to individuals or small groups.

Durkheim

A French sociologist best known for his foundational contributions to the field of sociology, including his theory on the social causes of suicide.

Marx

Karl Marx, a 19th-century philosopher, economist, and revolutionary socialist who developed the theories of Marxism, focusing on class struggle and the critique of capitalism.