Real business cycles could be a result of
A) shocks to the aggregate supply side of the economy.
B) abrupt changes in monetary policy.
C) increases in the budget deficit and national debt.
D) discretionary fiscal policy.
A
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In 2007, interest rates in Germany were 4.7 percent while the inflation rate was 1.7 percent. In 2008, interest rates increased to 5.3 percent and the inflation rate increased to 2.0. As a result, there is
A) a leftward shift in Germany's demand for money curve. B) a downward movement along Germany's demand for money curve. C) a rightward shift in Germany's money supply curve. D) an upward movement along Germany's demand for money curve.
Increasing returns to scale result when
A) in the long-run, an increase in inputs will lead to an increase in the average products of inputs. B) in the long run, an increase in inputs will lead to an equivalent increase in output. C) labor becomes more skilled. D) All of the above
Explain three factors that would cause the dollar to appreciate
One disadvantage of government subsidies over price controls is that subsidies
a. prevent the attainment of equilibrium in the markets in which they are imposed. b. make higher taxes necessary. c. are always unfair to those with low incomes. d. cause unemployment.