In real business cycle models, shifts of the aggregate demand curve ________
A) cause changes in inflation, but have no effect on output
B) cannot occur
C) result from changes in the willingness to work
D) result from Solow residuals
A
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The total willingness to pay for a given number of units of a good or service is determined by multiplying the equilibrium price of the good by the number of units purchased
Indicate whether the statement is true or false
The source of power for a labor union is its ability to
a. increase the supply of labor b. decrease the demand for capital c. increase the quantity supplied of labor d. decrease the quantity supplied of labor e. decrease the supply of labor
An excess demand in a market implies that
a. the amount demanded is less than the amount supplied b. price is greater than the equilibrium price c. a shortage of the good exists d. a surplus of the good exists e. the government must implement a price ceiling
Consumption of fixed capital (depreciation) can be determined by:
a) adding taxes on production and imports to NDP. b) subtracting NDP from GDP. c) subtracting net investment from GDP. d) adding net investment to gross investment.