Which of the following holds that business cycles are primarily due to changes in technology and does not invoke any monetary or demand-side forces?
A) the real business cycle theory
B) the efficiency wage theory
C) rational expectations hypothesis
D) Keynesian economics
A
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The ________ shows the relationship between the price level and quantity of real GDP demanded
A) 45-degree line B) aggregate demand curve C) consumer price index D) aggregate expenditure line
What appears to have been one of the major causes of the Asian financial crisis?
What will be an ideal response?
When a monopolist's marginal cost of production is zero:
a. the deadweight loss is reduced. b. production is lower than if marginal cost were positive. c. the price charged is higher than if marginal cost were positive. d. maximizing profit is same as maximizing revenue.
Which of the following is responsible for decision making regarding the purchase and sale of bonds by the Fed?
a. the chairman of the Board of Governors of the Federal Reserve System b. the Federal Open Market Operations Committee c. the U.S. Secretary of Treasury d. the president, with the advice and consent of the chairman of the Council of Economic Advisers.