According to real business cycle theory, which of the following events is least likely to cause a recession?
A) A decline in the money supply
B) A decline in the capital stock
C) A decline in productivity
D) A decline in labor supply
A
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Which of the following is a reason not to join a monetary union?
A) the loss of national identity B) the loss of seignorage C) a lack of fiscal integration D) All of these are reasons not to join.
Supply shocks after 1985
A) forced the Fed to follow restrictive monetary policy and caused a negative output ratio. B) forced the Fed to follow restrictive monetary policy and caused a positive output ratio. C) allowed the Fed to follow accommodative monetary policy and caused a negative output ratio. D) allowed the Fed to follow accommodative monetary policy and push the output ratio toward zero.
Describe the steady state in the Solow growth model
What will be an ideal response?
If the market for used computers has only lemons (low-quality computers) then the market:
A. is an example of a thick market. B. suffers from an adverse selection problem. C. is a type of monopoly. D. must be monopolistically competitive.