Real business cycle theory would emphasize the ability of a beneficial supply shock to shift the __________ curve rightward and __________ Real GDP
A) AD; lower
B) AD; raise
C) LRAS; lower
D) LRAS; raise
D
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If taxes are $2,000 when income is $15,000 and they are $3,000 when income is $19,000, then the marginal tax rate is
A. 20%. B. 30%. C. 25%. D. 40%.
In a market with positive externalities, the market equilibrium price will be less than the efficient equilibrium price
Indicate whether the statement is true or false
The difference between a firm's total revenues and total costs when all explicit and implicit costs are included is the firm's:
a. economic profit. b. accounting profit. c. opportunity cost of capital. d. long-run average total cost.
Richard's indifference curve for two goods (bread and butter) is L-shaped, whereas Kate's indifference curve for the same two goods is convex. We can infer that _____
a. Kate considers bread and butter to be perfect substitutes b. Kate considers bread and butter to be perfect complements c. Richard considers bread and butter to be perfect substitutes d. Richard considers bread and butter to be perfect complements