In the RBC model, supply shocks
A) are always favorable by definition, but come at irregular intervals.
B) are always adverse by definition, but come at irregular intervals.
C) alternate between favorable and adverse shocks.
D) follow demand shocks with the opposite effect on output.
C
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"Marginal cost is the increase in total cost that results from a one-unit increase in a variable input." True or false? Explain
Indicate whether the statement is true or false
If a firm is a natural monopoly, its
a. long-run average cost declines over the full range of market demand b. long-run average cost increases over the full range of market demand c. fixed cost declines over the full range of market demand d. fixed cost increases over the full range of market demand e. long-run average cost declines and marginal cost rises over the full range of market demand
State four factors that explain why investment spending tends to be unstable.
What will be an ideal response?
A tit-for-tat strategy can be used in
A) a single-play game or a repeated game. B) a single-play game but not a repeated game. C) a repeated game but not a single-play game. D) neither a repeated game nor a single-play game.