Real business cycle theorists agree with new classical economists that
a. agents maximize utility and form expectations rationally.
b. the labor market do not clear.
c. imperfect information plays a big role in business cycles.
d. Both a and c
A
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The term "market" in economics refers to
A) a group of buyers and sellers of a product and the arrangement by which they come together to trade. B) a legal institution where exchange can take place. C) an organization which sells goods and services. D) a place where money changes hands.
What is the main reason for changes in GDP in the short run?
What will be an ideal response?
Games can be judged according to the payoffs
A) as zero-sum, negative-sum, and positive-sum games. B) as collusive or noncollusive games. C) as competitive or noncompetitive games. D) whether all companies participate or not.
In a market with only one firm (a pure monopoly), the Herfindahl-Hirschman Index (HHI) would equal 10,000
a. True b. False Indicate whether the statement is true or false