According to real business cycle theory, the primary causes of business cycles are
A) shocks to aggregate demand.
B) monetary factors.
C) technology shocks.
D) waves of self-fulfilling optimism and pessimism.
C
You might also like to view...
The long-run aggregate supply curve is ________.
A. vertical B. upward-sloping and becomes flatter at output levels above the full-employment output C. upward-sloping and becomes steeper at output levels above the full-employment output D. horizontal
The above table gives data for the nation of Mouseville. There are no imports into or exports from Mouseville. Unplanned inventory changes are zero when real GDP equals
A) $300 billion. B) $500 billion. C) $900 billion. D) $700 billion. E) $800 billion.
Which of the following is most likely to help the residents of a nation produce more goods and services and achieve higher income levels?
a. higher tax rates b. a higher rate of investment c. a smaller trade sector d. greater use of taxation to transfer income from the rich to the poor
If an additional worker costs you $15 per hour and can add 10 units per hour of output to the firm, you should hire that person as long as
A. demand for your product is increasing and you sell in a competitive market. B. the product price is at least $1.50. C. the value of marginal product is between $10 and $14. D. the marginal product of the worker is greater than the value of the marginal product.