According to the real business cycle theory, business cycle contractions are generally caused by
A) the self-interest of politicians.
B) decreases in business investment.
C) decreases in the growth rate of the money supply.
D) decreases in the economy's capacity to produce.
E) all of the above
D
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The process through which an economy's production possibilities curve shifts outward is:
a. full-employment management. b. investment. c. resource renewal. d. out-resourcing.
If the firms in a perfectly competitive market are continually operating where their total costs exceed their total revenue in the short run, then in the long run
a. the number of firms in the market will remain unchanged b. the number of firms in the market will increase c. the number of firms in the market will decrease d. existing firms will increase their plant sizes e. existing firms will increase their output
How much of each dollar spent by a consumer ultimately becomes income to someone else?
A. more than one dollar B. It depends on how much labor was needed to produce the good that the consumer buys. C. one dollar D. It depends on how much the cost there is in the distribution channel that delivers the good from the manufacturer to the consumer.
The largest amounts of dollars spent on income transfers are for
A. Welfare programs. B. TANF. C. Social insurance programs. D. Unemployment insurance.