According to real business cycle theory, recessions are caused by
A. monetary factors affecting aggregate demand.
B. a decline in the supply of money.
C. changes in resource availability and technological innovation.
D. people choosing leisure rather than work.
Answer: C
You might also like to view...
The problem with the separation of ownership from control is that
A) the owner in a proprietorship may not always act in the profit-maximizing fashion because he or she may not have the experience or expertise that professional managers have. B) the managing partner of a firm may not always behave in the way that other managers would if they were the managing partners. C) the managers of the firm can make decisions that reduce the wealth of the owners while not reducing their own wealth. D) the owners of firms may not always know the best way to run a firm, yet they are the ones who elect the managers of the firm.
A good that is most likely to be in the producer price index is:
A. industrial machinery. B. SUV. C. spaghetti. D. All of these are in the PPI.
If a nation has flexible exchange rates and its current and capital accounts equal zero, then the:
a. Financial account must be positive b. Financial account can be positive or negative depending on the size of the budget deficit and exchange rate. c. Reserves account can be positive or negative depending on the size of the budget deficit and exchange rate. d. Financial account minus the reserves account must equal zero.
To diversify, a homeowner with a variable-rate mortgage should choose investments that
a. pay higher returns when interest rates rise and lower returns when interest rates fall. b. pay lower returns when interest rates rise and higher returns when interest rates fall. c. provide a higher return than the market average. d. provide a lower return than the market average.