The real business cycle theory and the new classical theory agree that
a. business cycles are driven by changes in aggregate demand.
b. expectations are formed rationally.
c. imperfect information plays a big role in business cycles.
d. none of the above.
B
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A private equity firm is a group of investors that buys up the publicly traded stock of a large corporation and then takes the corporation private.
Answer the following statement true (T) or false (F)
Which economist is credited with having been the first to discuss the "lemons problem"?
A) George Akerlof B) Milton Friedman C) Robert Shiller D) James Tobin
During the 100 years before the Revolutionary war, shipping costs were reduced by nearly:
a. 10 percent. b. 25 percent. c. 50 percent. d. 70 percent. e. Shipping costs increased during that period.
Consumers may benefit more than sellers from a subsidy to sellers if:
A. they deserve the subsidy more. B. the demand curve is relatively more elastic than the supply curve. C. the demand curve is relatively less elastic than the supply curve. D. Consumers can never benefit more than sellers from a subsidy to sellers.