The economic theory that emphasizes the role of difficulties in coordinating economic affairs as a cause of economic fluctuations is known as:
A. Keynesian economics.
B. investment cycle theory.
C. real business cycle theory.
D. technology shock theory.
Answer: A
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? A country would tend to experience currency appreciation relative to other countries if:
a. the profitability of investments within the country increases relative to the rest of the world. b. people in the foreign currency markets expect the value of the currency to rise in the near future. c. the foreign demand for its exports increases. d. all of the above
By 2006, 20 percent of the mortgage market consisted of:
A. securitized loans, and the rest were backed by the government. B. subprime loans, while 80 percent were still regular prime mortgages. C. individual mortgage loans, and an overwhelming 80 percent had become securitized loans. D. prime loans, and an overwhelming 80 percent had become subprime mortgages.
Firms can practice indirect price discrimination by
a. Offering volume discounts b. Using two-part pricing c. Offering a bundle containing a number of units d. All of the above
The terms of trade is defined as:
a. the quantity of inputs sacrificed to produce each unit of a good. b. the quantity of one good that is exchanged for a quantity of another good. c. the ratio of the total cost of production of individual traders. d. the marginal cost of producing one good as a percentage of the marginal cost of another good. e. the ratio of total exports of a nation to its total production.