The real business cycle model focuses on how
A) the labor theory of value is the best measure of value of a good or service.
B) productivity shocks explain fluctuations in real GDP.
C) wage and price stickiness explains fluctuations in real GDP.
D) the Federal Reserve should adopt a monetary growth rule.
B
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If government spending is $6.2 trillion while government revenue is $6.2 trillion, the government is said to have a
A) balanced debt. B) balanced budget. C) budget surplus. D) budget deficit.
Given the above equation, the income elasticity of demand for noodles is _____
a. 5 b. 0.5 c. 2 d. 2.5 e. 1.6
Financial intermediaries that are collected pools of funds from many investors are called: a. mutual funds. b. banks
c. credit unions. d. stockbrokers.
Fluctuations around the long-term growth rate are called:
A. depressions. B. recessions. C. expansions. D. business cycles.