The basic RBC model predicts ________ movements in the price level, which in fact occur ________ in the U.S. economy
A) countercyclical, only occasionally
B) countercyclical, most of the time
C) procyclical, only occasionally
D) procyclical, most of the time
A
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State sales taxes are operated as a system of
A) ad valorem taxation. B) unit taxation. C) income taxation. D) revenue minimizing taxation.
A firm that wants to maximize profits should hire each input to the point where
A) its marginal revenue product divided by the price of the input equals one. B) its marginal revenue product divided by its marginal physical product equals the wage. C) its marginal revenue product divided by the product price equals one. D) its marginal physical product divided by the price of the input equals the product price.
How is human capital most commonly measured?
a. By the organizational rank and seniority b. By the amount of pay and incentives c. By the amount of education and training d. By the compensation structure and work policies
The prevalent welfare policy is to
A. provide vocational training for welfare recipients, so that they can be self-supporting. B. provide government and private sector employment for those leaving the welfare rolls. C. to basically force welfare recipients to leave the welfare rolls. D. to allow welfare recipients to continue receiving benefits as long as there are children under six years of age in the family.