Real business cycle theory explains changes in employment and output by focusing on
A) changes in fiscal policy. B) real supply-side factors.
C) the interaction of fiscal and monetary policies. D) changes in monetary policy.
B
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The slope of the aggregate supply curve shows that the ________ the price level, the ________
A) lower; is the quantity of potential GDP supplied B) lower; greater is the quantity of real GDP supplied C) higher; is the quantity of potential GDP supplied D) higher; greater is the quantity of real GDP supplied E) higher; smaller is the quantity of real GDP supplied
If a monopoly is operating along the portion of its demand curve where marginal revenue is positive, its
A) total revenue increases when price decreases. B) total revenue decreases when price decreases. C) total revenue remains the same when price decreases. D) total revenue is zero.
Of the following exchange rate arrangements, in which does the exchange rate fluctuate around a fixed central target rate while allowing a moderate amount of fluctuation?
A) Independently floating B) Currency Board C) Horizontal Bands D) Fixed peg
Which of the following is most important if the living standards of people residing in a country are going to improve?
A. growth of population B. growth of per capita GDP C. growth of the money supply D. growth of government expenditures as a share of GDP