Describe and explain the real business cycle theory
What will be an ideal response?
The real business cycle theory is a modification of the new classical theory that states that money is neutral in its impact on the economy and only real supply-side factors matter in influencing employment and real output. Real Gross Domestic Product (GDP) is determined by real variables such as the supply of inputs and technology and monetary policy only affects the price level.
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Approximately _____ percent of state and local spending in 2007 was for the purchase of goods and services
a. 90 b. 72 c. 40 d. 15 e. 5
Shows on broadcast TV, like ABC or NBC, are ________ and shows on cable TV, like MTV or HBO, are ________.
A. nonexcludable; excludable B. excludable; nonexcludable C. rival; nonrival D. nonrival; nonexcludable
A supply and demand model is a:
A. model that considers only important feedback effects. B. path-dependent model. C. model that considers all feedback effects. D. model that does not consider feedback effects.
As a result of advances in technology, cellular telephones have become cheaper to produce. Illustrate the effect of this change on the market for cellular telephones
What will be an ideal response?