In the real business cycle theory, business cycle contractions begin as a result of changes in
A) aggregate GDP.
B) aggregate spending.
C) aggregate demand.
D) aggregate consumption.
E) long-run aggregate supply.
E
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If an alternative provides a benefit of $8 to an individual at a cost of $6, the net benefits of the alternative equal:
A) $0.75. B) $48. C) $2. D) $14.
Exhibit 2-14 Production possibilities curve
In Exhibit 2-14, which of the following explains this economy's movement from point E to point F?
A. The rate of unemployment in this economy would have increased. B. Consumption goods production has increased, but capital goods production has decreased. C. The economy has decreased unemployment, but some degree of unemployment still exists D. The economy has achieved full employment.
Which of the following is not part of the "regulation of health insurance" provision of the Patient Protection and Affordable Care Act (ACA)?
A) Individuals with pre-existing medical conditions are able to acquire health insurance. B) All policies must provide coverage for dependant children up to age 26. C) Lifetime dollar maximums on coverage are prohibited. D) Limits on the size of deductibles and on waiting periods before coverage takes effect have been eliminated.
Potential output is the
a. maximum rate of output that can ever be achieved. b. highest rate of output that has ever been achieved in the past. c. maximum sustainable output level consistent with the economy's resource base and current institutions. d. the rate of output present when the general level of prices is unstable.