The theory that real shocks to the economy are the primary cause of business cycles is
A. Hamiltonian theory.
B. Keynesian theory.
C. real business cycle theory.
D. monetarism.
Answer: C
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Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as 
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting upward C. Short-run aggregate supply shifting downward D. Aggregate demand shifting leftward
In the above table, if the firm produces 2 units of output, it will
A) make an economic profit of $9. B) make an economic profit of $60. C) incur an economic loss of $9. D) incur an economic loss of $60.
The World Bank was created as a result of the Bretton Woods conference and was originally focused on the reconstruction of Europe after World War II
Indicate whether the statement is true or false
A vertical supply curve exhibits
A) a constant elasticity of supply. B) a perfectly inelastic supply curve. C) Both A and B are true. D) None of the above.