Real business cycle theory explains changes in employment and output by focusing on
A. changes in monetary policy.
B. the interaction of fiscal and monetary policies.
C. changes in fiscal policy.
D. real supply-side factors.
Answer: D
You might also like to view...
Short-run macroeconomic equilibrium occurs when the quantity of real GDP demanded ________
A) equals potential GDP B) equals full-employment GDP C) does not equal full-employment GDP D) equals the quantity of real GDP supplied
When the marginal revenue curve is drawn for a monopolist, the curve
a. is above the monopolist's demand curve initially and then falls below the demand curve. b. is above the monopolist's demand curve for all output levels c. is equal to the monopolist's demand curve at all output levels. d. is below the monopolist's demand curve, beyond the initial unit produced.
Budget deficits are appropriate during
A. recessions, but not inflations. B. inflations, but not recessions. C. recessions and inflations. D. neither recessions nor inflations.
The amount of information an individual would seek before making a decision:
A. varies directly with the importance of the decision. B. is about the same across all individuals. C. depends on how much time it will take to get the information regardless of the decision. D. is the same across all decisions but varies across individuals.