According to real business cycle theory, a likely cause of an increase in employment is ________
A) an increase in the real wage
B) an increase in aggregate demand
C) a decrease in the real wage
D) a decrease in the real interest rate
A
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The short run:
A. is typically defined by the process cycle of the particular firm. B. is defined by the presence of a fixed cost for a firm. C. is generally less than a year. D. All of these are true.
A competitive market economy with low barriers to entry affords an entrepreneur with
a. an environment that shields each currently successful producer from changing market conditions. b. the opportunity to bring new and different products and services to the market. c. little opportunity for wealth creation. d. a static business environment.
Refer to Table 9-3. If the required reserve ratio is 10%, what is the amount of excess reserves held by Alpha-Beta Bank?
A) $25 million B) $40 million C) $60 million D) $75 million
As the size of the MPC increases, the value of the balanced-budget multiplier
A. decreases. B. increases. C. remains constant. D. could either increase or decrease.