Which of the following statements is true about causes of business cycle fluctuations?
A. Economists all agree that monetary changes are primarily responsible for business cycle fluctuations.
B. Economists all agree that supply shocks are the cause of most business cycle fluctuations.
C. There are a wide range of theories as to the underlying causes of business cycle movements.
D. Economists all agree that productivity shocks are the cause of most business cycle changes.
Answer: C
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Downsizing can be represented by
a. moving to a point on the left along the LRATC curve b. moving to a different short-run ATC curve on the right c. remaining on the same short-run ATC curve d. a downward shift in the LRATC curve e. an upward shift in the LRATC curve
Refer to the accompanying figure, which shows the market for cups of coffee. At the original market equilibrium:
A. 60 cups are sold per hour at a price of $1.50 each. B. 50 cups are sold per hour at a price of $2.50 each. C. 50 cups are sold per hour at a price of $1.00 each. D. 40 cups are sold per hour at a price of $2.00 each.
Suppose the price of a Snickers candy bar is $2.00 at both the airport and the grocery store. The price elasticity of demand for a Snickers candy bar at an airport is likely to be ________ the price elasticity of demand for a Snickers candy bar at the grocery store.
A. equal to B. the reciprocal of C. less than D. greater than
According to Keynes
A. both consumption and saving are positively related to real disposable income. B. consumption is positively related to the interest rate. C. consumption is directly related to income but saving is inversely related to income. D. consumption is directly related to income but saving has no relationship with income.