Real business cycle theory explains variations in prices, employment, and real Gross Domestic Product (GDP) by focusing on
A) changes in real variables such as supply shocks, technological changes, and shifts in the composition of the labor force.
B) anticipated changes in fiscal policy enacted by the government.
C) the effects of the Phillips curve.
D) anticipated monetary policies enacted by the Fed.
A
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The financial institutions in our banking system are all in the business of transferring funds from savers to investors. This process is known as
A) financial intermediation. B) money laundering. C) parachuting. D) lobbying.
All else constant, as the price elasticity of demand decreases, so does the marginal revenue resulting from a decrease in price
Indicate whether the statement is true or false
According to recent research, the gas tax in the United States is lower than the optimal level
a. True b. False Indicate whether the statement is true or false
Which of the following is the equation for determining an expected value?
A. (1 - Risk factor) × PDV. B. (1 - Risk factor) ÷ PDV. C. (Risk factor - 1) × PDV. D. (Risk factor - 1) ÷ PDV.