Over a business cycle, the quantities of capital, human capital, and entrepreneurial talent
A) change gradually and do not fluctuate much.
B) cycle alongside real GDP.
C) are completely unpredictable and cannot be forecast.
D) cycle more than real GDP.
E) are constant and do not change.
A
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A temporary supply shock, such as a bumper crop, would
A) shift the FE line to the right and leave the IS curve unchanged. B) shift the FE line to the left and shift the IS curve up and to the right. C) shift the FE line to the left and leave the IS curve unchanged. D) have no effect on the FE line.
In the period 1965 through the 1970s, policymakers pursued ________ policies in order to achieve ________
A) expansionary; high employment B) expansionary; low inflation C) contractionary; high employment D) contractionary; low inflation
If a firm increases its output level in the short run, then
a. variable cost rises but fixed cost remains unchanged b. both variable cost and fixed cost rise c. variable cost rises, but fixed cost fall d. both variable cost and fixed cost fall e. variable cost remains unchanged, but fixed cost rises
Acceptance of the euro by the member state implies:
a. Common monetary policy b. Common fiscal policy c. Common foreign policy d. Common labor policy