The real business cycle theory holds that the business cycle
A) originates as a result of factors affecting aggregate supply.
B) originates as a result of factors affecting aggregate demand.
C) is the result of correctly anticipated policies.
D) is the result of incorrectly anticipated policies.
A
You might also like to view...
If a firm is producing a quantity along the upward sloping portion of its marginal cost curve at which marginal cost exceeds price and is earning positive economic profits, it should
a. continue to produce this quantity. b. decrease the quantity produced because doing so will increase profit. c. increase the quantity produced because profits are still positive. d. wait for the price to increase to its current marginal cost.
John loves to travel. He would never turn down the opportunity to go on a trip. This means that, for John:
a. the total utility of travel always increases. b. marginal utility of travel never decreases. c. the law of diminishing marginal utility does not apply to travel. d. marginal utility of travel is always zero. e. extra travel yields zero consumer surplus.
Assuming the standard assumptions, in a single-play ultimatum game, the second player's best strategy in the last round is to:
A. accept only those offers over 50 percent of the total. B. accept any offer greater than zero. C. reject all but evenly split offers. D. reject all offers.
If aggregate demand just increased, which of the following may have caused the increase?
A) an increase in government purchases B) an increase in the interest rate C) an increase in the price level D) an increase in imports