Real business cycle theory is an attempt to explain business cycle fluctuations under the assumptions of
A. wage and price controls.
B. closed economies and fiscal spending.
C. market clearing and rational expectations.
D. government intervention and trade regulation.
Answer: C
You might also like to view...
Unemployment that is caused by business recessions is called
A) frictional unemployment. B) cyclical unemployment. C) seasonal unemployment. D) structural unemployment.
There exist only two causes of monopoly: barriers to entry and government restrictions.
Answer the following statement true (T) or false (F)
Which of the following is an implicit cost of owning a business?
(i) interest expense on existing business loans (ii) forgone savings account interest when personal money is invested in the business (iii) damaged or lost inventory a. (i) only b. (ii) only c. (i) and (ii) d. All of the above are correct
When two goods are substitutes, their cross price elasticity of demand
A. infinity. B. negative. C. 0. D. positive.