In the real-business-cycle theory:
A. declines in real output cause declines in the money supply and thus aggregate demand.
B. decreases in long-run aggregate supply are fully anticipated and therefore do not reduce
real output.
C. technology is constant.
D. economic instability results from inappropriate monetary policy.
A. declines in real output cause declines in the money supply and thus aggregate demand.
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Limitations of bargaining include:
A. contracts may not need enforcing. B. property rights might be assigned in the wrong way. C. if the parties have too much information, bargaining may be unnecessary. D. None of these is correct.
Assuming no change in the nominal exchange rate, how will a decrease in the price level in the United States relative to France affect the real exchange rate between the two countries? (Assume the United States is the "domestic" country.)
A) The real exchange rate will fall. B) The real exchange rate will be unaffected. C) The real exchange rate will rise. D) The impact on the real exchange rate cannot be predicted.
Which of the following is an example of an organization using marginal analysis? a. A hotel manager calculating the average cost per guest for the past year
b. A farmer hoping for rain. c. A government official considering what effect an increase in military goods production will have on the production of consumer goods. d. A business calculating economic profits.
A payment that is periodically adjusted in proportion to a price index such as the CPI is known as a(n)
a. unionized payment. b. indexed payment. c. scaled payment. d. inflated payment. e. adjusted payment.