The business cycle is the
A) regular growth rate of the real GDP.
B) regular fluctuations of real GDP below potential GDP.
C) irregular fluctuations of prices around real GDP.
D) irregular fluctuations of real GDP around potential GDP.
D
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Suppose that Matt quits a job with the XYZ Corporation in order to look for more rewarding employment. Matt is best be considered as
A) still being employed. B) included in the economy's "hidden employment." C) frictionally unemployed. D) cyclically unemployed.
Japan is generally considered an economy closed to foreign trade
a. True b. False
Aluminum Aces dumps wastewater into a creek they have owned for decades. The new neighbor, Ms. Franklin, has tried to grow bamboo along the creek where it enters her property, but the wastewater kills about $1,000 worth of her bamboo each year. She offers Aluminum Aces $600 per year to add a new filter, which costs $400, to their system so wastewater will no longer kill her bamboo. Which of the following is true of this situation and necessary for it to fit the Coase theorem?
a. Neither party is worse off than before. b. Property rights are not defined. c. A positive externality is internalized. d. Transaction costs are high.
In this graph, why does point B move up to point C?
a. In the short run, the increase in money supply leads to a higher price level, which causes the interest rate to lower.
b. In the long run, the increase in money supply leads to a lower price level, which causes the interest rate to rise.
c. In the short run, the increase in money supply has little effect on price level, which causes the interest rate to lower.
d. In the long run, the increase in money supply leads to a higher price level, which causes the interest rate to rise.