Answer the following statements true (T) or false (F)
1. The innovation theory is classified among the real or physical causes of the business cycle.
2. The theory of rational expectations is classified as a psychological cause of the business cycle.
3. The under consumption theory is classified as a real or physical cause of the business cycle.
4. The under investment theory is classified as a monetary cause of the business cycle.
5. In using the GDP as a measure of business cycles, it is best to use real GDP.
1. TRUE
2. TRUE
3. FALSE
4. FALSE
5. TRUE
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Which expression best represents the break-even level of investment when incorporating labor-augmenting technological change into the Solow growth model?
A) (d + n + g)k B) (d + n)k C) (d + n ) / (k + g) D) (d + n + k) / (gk)
Which of the following is one of the main features of our modern economy that helps ensure against a repeat performance of the Great Depression?
a. transfer payments b. outsourcing c. multiplier d. personal income tax
Suppose when a monopolist produces 50 units its average revenue is $8 per unit, its marginal revenue is $4 per unit, its marginal cost is $4 per unit, and its average total cost is $3 per unit. What can we conclude about this monopolist?
a. The monopolist is currently maximizing profits, and its total profits are $200. b. The monopolist is currently maximizing profits, and its total profits are $250. c. The monopolist is not currently maximizing its profits; it should produce more units and charge a lower price to maximize profit. d. The monopolist is not currently maximizing its profits; it should produce fewer units and charger a higher price to maximize profit.
A decrease in the quantity of resources available causes a movement down along a given PPF
Indicate whether the statement is true or false