According to real business cycle theory, a major source of fluctuations in economic activity is __________.
a. Supply shocks
b. Shocks of technology
c. The presence of a labor shortage
Answer: b. Shocks of technology
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Deadweight loss can be the result of
A) overproduction, but not underproduction. B) underproduction, but not overproduction. C) both overproduction and underproduction. D) neither overproduction, nor underproduction.
The U.S. is probably the most open international market among the industrialized countries. What then does the U.S. have to gain by joining the WTO?
What will be an ideal response?
Now that the world is technologically advanced, nations no longer try to protect infant industries
Indicate whether the statement is true or false
If the Costa Rican colone is expected to depreciate in the future, it will temporarily appreciate as people move to take advantage based on this expectation
Indicate whether the statement is true or false