The "real business cycle" (RBC) model adapts the Lucas model by replacing its assumption of
A) demand shocks as primary generators of cycles.
B) adaptive expectations.
C) continuous market-clearing.
D) slow wage and price adjustment.
A
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Under normal circumstances, the ratio of a country's export prices to its import prices should
a. increase as trade increases b. decrease as trade increases c. fluctuate as trade increases d. remain constant as trade increases e. none of the above
If the consumption function is C = 20 + 0.5YD, then an increase in disposable income by $100 will result in an increase in consumer expenditure by
A) $25. B) $70. C) $50. D) $100.
What are the four characteristics of a financial instrument?
What will be an ideal response?
All of the following were classical economists EXCEPT
A. David Ricardo. B. Jean-Baptiste Say C. Milton Friedman. D. Adam Smith.