However linked the war-induced cycle theory is to our economic reality, most economists suppose that
a. war conspiracies, seemingly far-fetched, have much validity
b. these cycles were random shocks to an economy already in continuous cyclical motion
c. most wars since 1815 (Napoleonic period) were initiated principally to jump-start a sagging economy
d. wars are necessary to achieve sustained economic prosperity
e. there is no link between war and the economy
D
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The new classical explanation of aggregate supply in the short run builds on research by
A) Irving Fisher. B) John Maynard Keynes. C) Robert Lucas. D) Robert Solow.
Demand and supply analysis is particularly important if
a. the success of your firm is closely linked to the profitability of your primary industry b. the success of your firm is independent of the profitability of your primary industry c. the success of your firm is unlikely d. demand and supply analysis is unimportant
In the 1970s and early 1980s, the U.S. economy experienced
A) stagflation. B) low inflation and low unemployment. C) high inflation and low unemployment. D) high inflation and high unemployment. E) a and d
Assume that the current one-year rate is 5% and the two-year rate is 7%. Given this information, the one-year rate expected one year from now is
A) 5%. B) 6%. C) 7%. D) 9%. E) 12%.