A markup of price over marginal cost is inconsistent with free entry and zero profit
a. True
b. False
Indicate whether the statement is true or false
False
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The household survey is compiled from firms who answer questions about the number of persons who are employed and on the company payroll
Indicate whether the statement is true or false
What type of loan led the wave of bank lending in the 1970s and 1980s?
A) consumer loan B) commercial mortgage C) loans to state and local governments D) commercial paper
Political business cycles result:
a. from the economic fluctuations that occur when discretionary policy is manipulated for political gain. b. from the recessionary gap that occurs when output falls short of the economy's potential c. from the expansionary gap that occurs when output exceeds the economy's potential. d. when the spending multiplier is manipulated for political gain. e. from the economic fluctuations that occur when automatic stabilizers are manipulated for political gain.
According to Real Business Cycle theory,
a) lack of consumer confidence causes most business cycles b) price fluctuations are unimportant because they affect nominal, not real GDP c) recessions are an optimal response to negative technology shocks d) fiscal policy is the most appropriate way to smooth out economic fluctuations e) labor supply curves are extremely steep