According to the real business cycle theory, which of the following would be a real disturbance to the economy?
A) change in the required reserve ratio
B) reduction in the money supply
C) increase in the rate at which married women participate in the labor force
D) increase in the price level
C
You might also like to view...
When increased government spending results in decreased consumer or business spending, the government spending is said to be crowding out the consumer and business spending
Indicate whether the statement is true or false
Smoking increases the risk of lung infections not only for active smokers but also for other people inhaling the smoke passively. Which of the following will help in reducing smoking?
A) A corrective tax B) A life insurance C) A health insurance D) A health tax
The figure above shows a local lawn cutting service's demand for labor curve when the price of cutting an acre of lawn is $50 per acre. If the price of lawn cutting rises to $60 per acre of lawn cut, the firm's demand for labor curve
A) shifts rightward. B) shifts leftward. C) does not shift at all, but the firm moves upward along the curve. D) None of the above because this change shifts the supply of labor curve.
The consensus reached in the late 1990s was that from the 1980s onward the Fed had been
A) quicker to stimulate or restrain the economy when its output fell short of or exceeded its natural level. B) quicker to stimulate the economy when output fell short of the natural level, but slower to do so when output exceeded the natural level. C) slower to stimulate the economy when output fell short of the natural level, but quicker to do so when output exceeded its natural level. D) slower to stimulate or restrain the economy when its output fell short of or exceeded its natural level.