According to real-business-cycle theory:
A. monetary factors affecting aggregate demand cause macroeconomic instability.
B. recessions result from declines in long-run aggregate supply, rather than decreases in aggregate demand.
C. when real wages fall during recessions, "real" unemployment rates rise.
D. the net long-run costs of business fluctuations are severe.
B. recessions result from declines in long-run aggregate supply, rather than decreases in aggregate demand.
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Since the Social Security system began in the 1930s, the number of workers per retiree
A) has stayed roughly the same. B) has declined. C) has risen. D) declined through 1960 and has risen ever since.
A country in which a significant fraction of domestic production takes place in foreign-owned factories and facilities is most likely a country where
A) GNP is much larger than GDP. B) GDP is much larger than GNP. C) GDP is not comparable to GDP. D) GDP is equal to GNP.
Which of the following would be included in the gross domestic product (GDP)?
a. The monthly telephone bill paid by Mr. Jones b. The corporate stock purchased by Steven c. The used limousine purchased by Harold d. The bricks purchased by a construction company to build a house e. The $300 George saved because he painted his own garage
If a monopolist could sell 5 units at $6 and 6 units at $5: a. marginal revenue for the 6th unit is $5
b. marginal revenue for the 6th unit is zero. c. demand is unit elastic over that range of prices. d. both (b) and (c) are true.