When RBC economists compare the volatility in their models to the data, what are they looking at?
A. The amount of random variation in economic variables
B. The degree to which different economic variables move together
C. The strength of procyclicality of different variables
D. The degree to which variables lead output over the business cycle
Answer: A
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Which statement is true?
A. There was a great deal of stagflation in the 1970s. B. We had the worst recession since World War II in the late 2000s. C. We have had twelve recessions since January, 1945. D. All of the choices are true.
The principle of comparative advantage
A. applies only when the gold standard is in effect. B. is the basic reason that the United States has been running trade deficits. C. states that it is advantageous to export more than you import. D. states that total output is greatest when each product is made by the country that has the lowest opportunity cost.
The term "human capital" refers to how many people must work to produce a product
a. True b. False Indicate whether the statement is true or false
Economists place cartels among the least-desirable forms of market organization.
Answer the following statement true (T) or false (F)