Question

1. What problem did the great depression in the 1930's highlight that classical economics did not address?

Answer 1

C. how long the market would take to return to equilibrium

B. economic output

C. periods of depression and inflation

D. income equalizers

C. a tax cut does not cause employers to raise wages significantly

Answer 2

1) c how long the market would take to return to equilibrium

2) a productive capacity

3) c periods of depression and inflation

4) b automatic stabilizers

5) d a tax cut does not cause workers to work significantly more hours