A Principle Difference Between the New Classical and the New

question 114

Multiple Choice

A principle difference between the new Classical and the new Keynesian models has to do with the choices made by business firms.We find that

• A)new classical business firms choose the output level given the price level,while new Keynesian firms choose the price level given the level of output.
• B)new classical business firms choose the price level given the output level,while new Keynesian firms choose the output level given the level of output.
• C)both new classical and new Keynesian firms select the price level,but only new classical firms select the output level.
• D)both new classical and new Keynesian firms select the output level,but only Keynesian firms select the price level.

Discuss the political and economic arguments surrounding free trade and fair trade.

Identify strategies used by countries to improve their trade position, including targeting foreign markets and protectionist measures.

Understand the concept of domestic exchange equations in various countries.

Identify which product a country has an absolute advantage in producing.

---

Definitions:

Forceps

A handheld, hinged instrument used in medical procedures for grasping, holding, or extracting objects.

Latex Glove Allergy

An allergic reaction to certain proteins found in natural rubber latex, often resulting in skin irritation or more severe reactions.

Latex-Containing Dust

Dust particles that contain latex, posing respiratory or allergic risks, especially in sensitive individuals.

Hemostats

Surgical tools used to control bleeding by clamping blood vessels.