According to the real business cycle theory, ________ decrease the marginal product of labor, which causes real wages and output to decrease.
A. decreases in the money supply
B. negative technology shocks
C. positive technology shocks
D. increases in the money supply
Answer: B
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People who stopped looking for work because they could not find jobs are called discouraged workers
Indicate whether the statement is true or false
Income on the horizontal axis at which the vertical distance to the 45-degree line is greater than the vertical distance to the Ep line gives rise to a ________ amount of unplanned inventory investment, and thus ________ pressure on output
A) positive, upward B) positive, downward C) negative, upward D) negative, downward
A price floor keeps a price:
a. from rising above a certain level. b. from decreasing below a certain level. c. at a stabilized point. d. from increasing or decreasing.
Suppose the economy is in a prosperity phase of the business cycle. Employment is high and in the month of August, new demand deposits amounted to $15,000 billion, which supported a total increase (including the $15 billion) of $75,000 billion, which is the maximum allowable. The potential money multiplier, then,
a. must be 5 b. must be 2 c. must be 0.50 d. must be 0.20 e. cannot be determined from the information given