Question

Which of the following is an example of Say’s law?

During the 2008-10 many people hoarded money instead of purchasing goods..

The economy of the country of Wakanda has set fixed prices and wages for both the short and long term.

The automotive industry, in order to create more output, need to focus on increasing production rather than demand.

If you were to explain to a friend how the macroeconomy would be influenced by neoclassical policies, which of the following statements would be the correct explanation?

The macroeconomy has flexible prices and wages it is self correcting but still needs governmental regulation of wage policies, price ceilings and floors.

The macroeconomy has inflexible prices and wages meaning it is not self correcting and in need of governmental intervention for correction.

The macroeconomy has flexible prices and wages and it is self correcting and not in need of governmental intervention for correction.

The long-run economic level of output, according to the vertical, long-run aggregate supply curve, depends on ________.

an increase in aggregate demand

the price level

technology

When looking at an economic graph and the aggregate supply curve is flatter than the market supply curve for goods, services or labor (micro) and the price-levels are not falling, this is an example of a(n)

microeconomic externality.

positive externality.

macroeconomic externality.

During recessionary times it can be hard to coordinate lower wages for workers because of the ________.

relative wage theory

coordination argument

discoordination argument

Answer 1

Answer 1:

Option C. Aa example of Say's Law which states that supply creates its own demand in the market is The automotive industry, in order to create more output, need to focus on increasing production rather than demand.It should focus only on production rather than demand.

Answer 2:

Option A. The macroeconomy has flexible prices and wages it is self correcting but still needs governmental regulation of wage policies, price ceilings and floors. Neo Classical believe in self adjusting economy in the long run but in the short run government intervention is needed.

Answer 3;

Technology. The long run aggregate supply curve in the economy depends on the technological growth in the economy.

Answer 4:

Option B . Positive externality.