Based on the Belief That Prices Are Very Flexible,classical Economists

question 148

Multiple Choice

Based on the belief that prices are very flexible,classical economists conclude that

• A) the economy can become stuck at high levels of unemployment for long periods of time.
• B) government intervention in the economy is unnecessary.
• C) the economy will experience wild swings in output and employment.
• D) the best type of economy is centrally planned and run by the state.
• E) government intervention in the economy is very necessary.

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Definitions:

Exponentially Smoothed

A technique used in time series analysis that applies decreasing weights to older observations, with more recent data having more influence on the forecast.

Exponentially Smoothed

A data smoothing technique that gives recent observations more weight than older observations, often used in time series analysis.

Smoothing Constant

A parameter used in exponential smoothing methods that determines the level of smoothing applied to the data.

Seasonal Variation

Fluctuations in data or economic activity that occur regularly based on the season or time of year.