The most controversial element of the Frisch-Slutsky paradigm concerns
a) the direction in which employment moves during business cycles
b) the duration of business cycles
c) which types of events can cause business cycles
d) the manner in which exogenous shocks are translated into business cycles
e) whether the business cycle creates impulses or propagation mechanisms
d) the manner in which exogenous shocks are translated into business cycles
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Hughes and Cain (2011) talk about falling levels of investment during the Great Depression. What does the "investment" that they are talking about refer to?
(a) Engineering ideas behind the industry of the era (b) Money loaned by banks to consumers (c) Land, labor, and equipment used in production (d) Tools, equipment, machines, and buildings used in production
One of the primary functions of markets could be labeled
a. stimulation. b. coordination. c. planification. d. decentralization.
The long run is
A. Approximately one year. B. A period long enough for all inputs to be variable. C. A period longer than one year. D. The period required to produce a unit of the firm's output.
Automatic stabilizers:
A. require explicit actions by policy makers to become active. B. work without the need for decisions from Congress or the White House. C. magnify fluctuations in the economy. D. increase taxes during recessions.