The real business cycle model begins with the assumption that ________
A) wages and prices are sticky
B) wages and prices are completely flexible
C) the velocity of money is a constant
D) nominal variables are superior to real variables in describing economic activity
B
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Refer to the above figure. Which of the following would allow society to move to point d?
A) producing efficiently B) concentrating production in wheat C) increasing the quantity of labor D) using the best land to produce wheat and the lower quality land to produce beans
When Brenda was in college, she worked part-time delivering pizzas and she ate five boxes of macaroni and cheese per week. After graduation, she became a high school teacher and ate only two boxes of macaroni and cheese per week. From this information,
a. macaroni and cheese is a normal good for Brenda b. the law of demand applies to macaroni and cheese for Brenda c. macaroni and cheese are substitute goods d. macaroni and cheese is an inferior good for Brenda e. Brenda's income elasticity of demand for macaroni and cheese is positive
If a firm goes bankrupt and liquidates its assets, both stockholders and bondholders are responsible for any remaining debt.
Answer the following statement true (T) or false (F)
If there is a "long and variable time lag" between when a change in monetary policy is instituted and when it impacts aggregate demand and output, this will
What will be an ideal response?