RBC theorists claim that adverse supply shocks can take forms other than rising raw materials prices. One such shock comes from government policy:
A) reductions in government expenditure.
B) increases in tax rates.
C) more rigorous environmental regulation.
D) reductions in the money growth rate.
C
You might also like to view...
Given the table below, what is the total fixed cost when 400 units of output are produced? 
A. $500 B. $2000 C. $5000 D. $3500 E. none of the above
Who asserted that "the Federal Reserve's job is to take away the punch bowl just as the party gets going?"
a. president George W. Bush b. president John F. Kennedy c. economist John Maynard Keynes d. former chairman of the Federal Reserve System William McChesney Martin
Assume that Dusty has $30 in income, the price of a loaf of bread is $1.50, and the price of a jar of peanut butter is $3. At the original income of $30, if the price of a loaf of bread decreased to $1 and the price of a jar of peanut butter increased to $5, then Dusty could buy a maximum of ________ loaves of bread or a maximum of ________ jars of peanut butter.
A. 30; 6 B. 20; 5 C. 5; 20 D. 6; 30
Most cartels cease to be effective because:
A. consumers discover the cartel and buy from other firms instead. B. the dominant firm buys out the other firms. C. of the incentive to cheat on the cartel agreement. D. of strict enforcement of antitrust legislation.