According to Classical Economists, Market Oriented Economies Could _____

question 36

Multiple Choice

According to classical economists, market oriented economies could _____

• A) never experience high unemployment.
• B) experience high unemployment from time to time.
• C) normalize toward potential GDP with discretionary fiscal policy.
• D) normalize toward potential GDP with discretionary monetary policy.
• E) never experience potential GDP.

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Definitions:

Structural Functionalism

This theory posits that society functions as an intricate system, with its components cooperating to maintain cohesion and steadiness.

Social Feature

An aspect or characteristic of society that influences human behaviors, interactions, and relationships.

Universal Social Theory

A theory or perspective in sociology that strives to provide a general framework for understanding the diverse phenomena of society across all cultures and historical periods.

Iron Cage

Max Weber’s pessimistic description of modern life, in which we are caught in bureaucratic structures that control our lives through rigid rules and rationalization.