Briefly compare and contrast the business cycle theory of Joseph Schumpeter and the real business cycle theory
Schumpeter believed that business cycles are caused by the effects of major technological breakthroughs in
the economy. These large innovations spawn other innovations and developments that combine to lead to
economic growth. In contrast, while real business cycle advocates agree that innovations lead to economic
growth, they assert that innovations are numerous and random.
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Which federal agency publishes the United States' unemployment figures?
A) The Bureau of Labor Statistics B) Health and Human Services C) the Senate Committee on Labor Relations D) the Federal Reserve
A rightward shift in the aggregate demand curve is most likely to result in
A. deflation. B. recession. C. inflation. D. decrease in employment.
________ exist when the average cost of production by one firm becomes smaller as the rate of output increases
a. Diminishing marginal returns b. Diseconomies of scale c. Economies of scale d. Decreasing returns to scale
When a consumer is able and willing to buy or service, he or she creates which of the following?
a) consumption b) demand c) elasticity d) Allocation