The idea that business fluctuations are primarily caused by factors affecting aggregate supply rather than aggregate demand is a central tenet of
A. efficiency wage theory.
B. mainstream economics.
C. real business cycle theory.
D. monetarism.
Answer: C
You might also like to view...
Other things equal, an adverse supply shock would
a. Lower the price level b. decrease real output c. Shift AD left d. Do a. and b. but not c.
Maureen left her teaching job, which paid $30,000 per year, and invested $20,000 of her retirement fund (which was earning 10 percent interest) in a new real estate business. Her accountant predicted a $60,000 revenue the first year. Her husband, an economist, forecast her profit to be
a. $10,000. b. $28,000. c. $32,000. d. $60,000.
What is one reason why it is can be easier for developing nations have greater economic growth than developed nations?
a. They usually have lower population growth, so their GDP per capita is higher. b. They tend to have higher rates of education than more developed nations. c. They typically enjoy better protection of property rights by their governments than developed nations. d. They can adopt technology already developed by more advanced countries.
A short-run production function assumes that
A. at least one input is a fixed input. B. the level of output is fixed. C. all inputs are fixed inputs. D. both a and b E. both b and c