The real-business-cycle theory holds that business fluctuations are caused by:
A. factors affecting aggregate demand.
B. incorrectly anticipated government stabilization policies.
C. significant changes in technology and resource availability.
D. "stop-and-go" monetary policies.
C. significant changes in technology and resource availability.
You might also like to view...
The quoted in the textbook study of consumer behavior at Starbucks company stores demonstrated that including calorie count on menus had no impact on consumer behavior
Indicate whether the statement is true or false
Short-run supply curves for perfectly competitive firms tend to be upward sloping because:
A) there is diminishing marginal product for one or more variable inputs. B) marginal costs increase as output increases. C) marginal fixed costs equal zero. D) A and B are correct. E) B and C are correct.
Why does an economy need a rationing mechanism?
A) because of scarcity B) because it preserves the power of the wealthy C) because it eliminates poverty D) All of the above are correct.
The "dual mandate" refers to the:
A. orders given to both the Federal Reserve and the Treasury department to ensure price stability. B. role that the Fed has by being a governmental agency but also must act in the best interest of all citizens of the United States. C. twin responsibilities of the Federal Reserve, to use monetary policy to ensure price stability and maintain full employment. D. responsibility given to the Federal Reserve and the Congress to conduct monetary and fiscal policy respectively, to ensure price stability.