In the real business cycle theory, during a period when output is falling,
a. workers are voluntarily giving up their jobs.
b. the quantity supplied of labor is falling.
c. aggregate productivity must be falling.
d. all of the above.
e. none of the above.
D
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The supply curve of books (which are produced using paper made from trees) will shift to the left in response to
A. a decline in college tuition. B. an increase in home building. C. an increase in the supply of lumberjacks. D. an end to government regulations that limit timber harvesting in national forests.
Which of the following is NOT a result of a temporary fall in foreign demand on one country's exports under floating exchange rate?
A) The DD curve shifts to the left due to reduction of aggregate demand. B) The AA curve shifts downwards due to reduction of money supply. C) a fall in aggregate output D) depreciation in home country's currency E) a fall in the home interest rate
Which of the following statements is correct?
a. The classical aggregate AD curve can be shifted by monetary and non-monetary factors. b. The classical AS schedule is horizontal while the Keynesian aggregate AS schedule is vertical. c. The Keynesian AD curve only shifts in response to monetary factors. d. The classical aggregate supply schedule slopes upward to the right while the Keynesian aggregate supply schedule is vertical. e. none of the above are correct.
A banking panic occurs when
a. many banks fail simultaneously b. banks do not earn enough profit c. a bank exhausts all of its vault cash d. individuals cannot withdraw money from a bank e. bank officials fear they have made too many bad loans