The Main Difference Between Market-Clearing and Non-Market-Clearing Models of the Economy

question 55

Multiple Choice

The main difference between market-clearing and non-market-clearing models of the economy is

• A)the long-run path of wages.
• B)the long-run path of employment.
• C)the degree of wage and price flexibility in the short run.
• D)the long-run path of output.
• E)the tendency for output to return to potential in the long run.

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Definitions:

Lavender

A fragrant plant with purple flowers, used in making perfumes and in aromatherapy.

Capillary puncture

A medical procedure that involves pricking the skin, typically the fingertip, to obtain small blood samples.

Middle finger

The third digit of the human hand, located between the index finger and the ring finger, often used in gestures of insult or displeasure.

Ring finger

The fourth digit of the human hand, often associated with the wearing of rings to denote marital status.