The real-business-cycle theory:
A. is a monetarist view of the business cycle.
B. is the mainstream view of the business cycle.
C. assumes that the supply of money is constant.
D. says that macro instability results from shifts in the long-run aggregate supply curve.
D. says that macro instability results from shifts in the long-run aggregate supply curve.
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Given the information in Figure 14.4, the monopoly wage rate is:
A) W1. B) W2. C) W3. D) W4. E) none of the above
When firms advertise their products, they are attempting to:
a. shift the supply curve of the product to the right. b. shift the supply curve of the product to the left. c. shift the demand for the product to the right. d. shift the demand for the product to the left. e. create a surplus of the product.
The main policy goal for a country according to the mercantilists is
A) to create a one-time deficit in the balance of payments. B) to create a continuing deficit in the balance of payments. C) to create a one-time surplus in the balance of payments. D) to create a continuing surplus in the balance of payments. E) to create specie overflows.
Which of the following is one of the main features of our modern economy that helps ensure against a repeat performance of the Great Depression?
a. transfer payments b. outsourcing c. multiplier d. personal income tax