Neoclassical economic models assume that prices and wages are flexible in the long run.Question 24Answera.Trueb.False

Neoclassical economic models assume that markets are always in equilibrium.Question 11Answera.Trueb.False

Select all correct statements below.Note: This is a multiple-answer question; thus, more than one option may be correct.a.We assume prices are flexible in the short run.b.To model economic development, we assume flexible prices.c.In the long run, prices adjust to ensure market clearing.d.To model fluctuations in output, we assume flexible prices.

In Neoclassical economic models, government intervention is necessary to stabilize the economy during recessions.Question 18Answera.Trueb.False

The economic models that assume markets are monopolistically competitive and adjustments to equilibrium take time due to sticky wages and prices is known asMultiple choice question.monetarism.the New Classical Model.the New Keynesian Model.Keynesian economics.

Monetary policy decisions can have long-term effects on an economy's overall output.Question 38Answera.Trueb.False