Real business cycle theory emphasizes the effect of ________ on economic performance
A) government spending
B) the money supply
C) aggregate supply shocks
D) tax rates
C
You might also like to view...
Taxes can adversely affect free exchange
Indicate whether the statement is true or false
For the firm in Figure 8.1, the profit-maximizing (loss-minimizing) price and level of output are:
A) P2 and Q2. B) P1 and Q1. C) P4 and Q1. D) P3 and Q1.
One lesson that American policy makers can learn from the health care systems of other counties is
a. people must be willing to accept long waiting lists for expensive services. b. a government-run system ensures equal access across socio-economic groups. c. the importance of having a safety valve. d. the mix between general practitioners and specialists is of little importance. e. private insurance cannot complement government insurance.
Suppose it was discovered that the consistent consumption of chocolate raised IQ by ten points. As a result,
A. both equilibrium price and quantity for chocolate will rise. B. both equilibrium price and quantity for chocolate will fall. C. equilibrium price will rise and equilibrium quantity will fall for chocolate. D. equilibrium price will fall and equilibrium quantity will rise for chocolate.