Most economists see the business cycle
A) as a regular pattern of recessions and expansions of the same length and intensity.
B) occurring as a result of anticipated macroeconomic changes in the marketplace.
C) as randomly occurring, resulting from unpredictable long-run changes in the macroeconomy.
D) as resulting from the response of households and firms to macroeconomic shocks.
D
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In both Gamma and Delta average labor productivity is $20,000 per worker per year. The population of Gamma is 200,000 and the population of Delta is 400,000. Sixty percent of the population in each country is employed. Total output in Gamma is ________ and total output in Delta is ________.
A. $8 billion; $4 billion B. $2.4 billion; $4.8 billion C. $120,000; $800,000 D. $4 billion; $8 billion
When producing 8 units of output, average fixed cost is $12.50 and average variable cost is $81.25. Total cost at this output level is
A. $93.75. B. $97.78. C. $750. D. $880.
Assume that there were decreasing opportunity costs of production in an island economy that only produced two goods. What would the shape of the production possibilities frontier look like and why?
What will be an ideal response?
The Phillips curve is a negative empirical relationship between
A) bond prices and interest rates. B) unemployment and output. C) inflation and the real interest rate. D) unemployment and inflation.