According to your authors, the "boom" phase of the so-called "business cycle" is
A) caused by an expansionary increase of the money supply.
B) a systematic accumulation of mistakes among businesses and households across the economy.
C) undertaken because business planners miscalculate the expected profitability of their new ventures.
D) ultimately followed by a recessionary "bust" as people begin to correct for the mistakes they've made during the boom phase of the cycle.
E) described correctly by all of the above statements.
E
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Why does scarcity lead to the "what," "how," and "for whom" questions?
What will be an ideal response?
There is no elasticity of substitution that is inconsistent with tastes being homothetic.
Answer the following statement true (T) or false (F)
The mean household income is
A) the income that separates households into two equal groups. B) the most common household income. C) the percentage of total income received by the richest 20 percent of households. D) the average household income.
Refer to Figure 3.2, which shows David's and Celeste's individual supply curves for flower arrangements per week. Assuming David and Celeste are the only producers in the market, what is the market quantity supplied at a price of $30?
A. 200 B. 250 C. 300 D. 350