Real business cycle theory encourages economists to consider the role of ______.
a. changes in money supply
b. rational expectations
c. the supply side
d. the demand side
c. the supply side
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In the short run, a perfectly competitive firm might
A) set its price above marginal cost. B) set its price above marginal revenue. C) adjust the size of its fixed inputs. D) operate even though it is incurring an economic loss.
Explain the expression "time is more valuable than money." Explain in words and use a diagram to illustrate the implications of this for a person's labor supply curve
If a central bank wants to counter the change in the price level caused by an adverse supply shock, it could change the money supply to shift
a. aggregate demand right. b. aggregate demand left. c. aggregate supply right. d. aggregate supply left.
If a nation can produce a more computers per year than any other nation, that nation has a(n) ________ advantage in the production of computers.
A. relative B. natural C. absolute D. comparative