A belief that demand shocks are an important source of business cycle fluctuations implies a preference of ________
A) the new Keynesian model over the traditional Keynesian model
B) the real business cycle model over the traditional Keynesian model
C) the real business cycle model over the new Keynesian model
D) the new Keynesian model over the real business cycle model
D
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Regardless of how price elastic labor demand curves are, employers are unaffected by wage taxes if labor supply is perfectly inelastic.
Answer the following statement true (T) or false (F)
Arbitrage means seeking profit by
A) buying high and selling low. B) buying low and selling high. C) either of the above. D) neither of the above.
The neoclassical perspective places more emphasis on
a. supply. b. demand. c. aggregate supply. d. aggregate demand.
Countries that grew the fastest over the last 100 or so years had average growth rates of real income per person of about
a. 1.5 percent per year. b. 2.0 percent per year. c. 2.5 percent per year. d. 3.0 percent per year.