If you hear an economist argue that the economy does not experience business cycles but merely experiences variations in economic activity over time, you know that economist belongs to the school of
a. real business cycle theory
b. Keynesian economics
c. production possibilities growth theory
d. accelerator cycle theory
e. capital-based, long run growth theory
A
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An example of cyclical unemployment is a(n):
a. textile worker permanently laid off due to job lost to imports. b. autoworker who is temporarily laid off due to a decline in demand for cars. c. engineer permanently laid off due to advances in technology. d. computer programmer who leaves one job and accepts a new job.
With regard to international trade,
A. The production possibilities exceed the consumption possibilities. B. Some countries do not have a comparative advantage in producing anything. C. The market mechanism determines the terms of trade. D. Rich countries benefit at the expense of poor countries.
The Federal Open Market Committee oversees the buying and selling of:
a) government securities. b) foreign currencies. c) imports. d) corporate debt.
A source of demand volatility for agricultural products is:
A. The strict application of "100 percent parity" by the Department of Agriculture B. A sharp fluctuation in foreign demand for U.S. farm products C. The large grain harvest which resulted from excellent weather D. The increasing mechanization of farms