Why do neoclassical economists tend to put relatively more emphasis on long-term growth than on fighting recession?
A. price and wage stickiness is reasonable in the short run
B. government focuses more on recession and cyclical unemployment
C. standard of living is ultimately determined by long-term growth
D. upward trend of potential GDP determines the rate of inflation
Answer:C
Why do neoclassical economists tend to put relatively more emphasis on long-term growth than on fighting recession?
A. price and wage stickiness is reasonable in the short run B. government focuses more on recession and cyclical unemployment C. standard of living is ultimately determined by long-term growth D. upward trend of potential GDP determines the rate of inflation
Explanation: Type: Multiple Choice