The real business cycle model suggests that, with aggregate demand unchanged, increases in output would be associated with ________
A) an increase in inflation
B) a decline in inflation
C) and unchanged price level
D) procyclical inflation
B
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The drafters of the US Constitution, such as Madison, were particularly worried about:
a. the possibility of truly democratic elections b. violations of the Bill of Rights c. the Fifth Amendment d. not enough people voting e. protecting the interests of a minority from the majority
Suppose that two poker players believe that they are superior players to the rest of the people at their table. Further suppose that the two players make an agreement to concede hands to each other in order to drive the other players from the game first. Economists would model such behavior as
a. monopolistic competition. b. game theory. c. predatory pricing. d. a dominant strategy.
Which of the following situations depicts a closed shop?
a. Bruce’s application at Work Co. was rejected because he is a union member. b. The Work Co. job was open only to active union members in good standing. c. After a recent round of hiring, all the positions at Work Co. had been filled. d. Shift workers at Work Co. auto supply voted against joining the union.
Borrowing to pay for long-lived capital expenditures makes sense as
A) the benefits are received in the current year so the burden of paying for them should be spread over many years. B) the benefits are received over many years so the burden of paying for them should be spread over many years. C) the benefits are received in the current year so the burden of paying for them should be paid in the current year. D) the benefits are received over many years so the burden of paying for them should be paid in the current year.