According to the real business cycle theory, what is the principal cause of business cycle fluctuations?
What will be an ideal response?
According to the real business cycle theory, real shocks, especially productivity shocks, are the principal cause of business cycle fluctuations in aggregate economic activity.
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Consider the labor market below. 
If a minimum wage of $12 per hour is imposed in this labor market, then:
A. 400 workers will earn $12 an hour. B. total earnings will rise C. worker surplus will fall. D. 200 workers will lose their jobs.
In European terms, when the exchange rate for the U.S. dollar increases:
a. the dollar has appreciated. b. the dollar has depreciated. c. the euro has appreciated. d. the dollar has weakened
When MB = 171 ? 8Y and TC = 5Y2 + 108, the optimal level of Y is:
A. 8. B. 24. C. 9.5. D. 25.
If a buyer or seller enters into an exchange with another party who has more information, there is
A. a free-rider problem. B. symmetric information and moral hazard. C. asymmetric information and adverse selection. D. a negative externality imposed.