If demand for new investment goods weakens and firms revise downward their expectations of future sales, the coupling effects of the accelerator and the income multiplier
a. work against each other
b. create no loss in the economy as the effects cancel each other out
c. create the downward phase of the business cycle
d. create the upward phase of the business cycle
e. explain why real business cycle theorists believe the economy is unstable and cyclical
C
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a. National defense. b. A fishing lake. c. A lighthouse. d. A radio broadcast.
What are transfer payments? Give two examples
What will be an ideal response?
Which types of firms have limited liability?
A) corporations B) corporations and partnerships C) partnerships D) proprietorships
Over the range of diminishing marginal product, if the variable input to a firm is increased: a. output will increase more than in proportion to the increase in the input
b. output will increase less than in proportion to the increase in the input. c. output will increase exactly in proportion to the increase in the input. d. output will increase more than in proportion to the increase in the inputs at first, but it will eventually increase less than in proportion to the increase in the input.