Real business cycle proponents would agree with all of the following except
a. the government's efforts to stabilize the economy can be counterproductive.
b. unanticipated changes in the money supply are destabilizing to the economy.
c. business cycles are a natural response to technology shocks.
d. markets are perfectly competitive.
B
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If borrowers and lenders expect a higher rate of inflation
What will be an ideal response?
Goods and services purchased from international sources are
A. Net imports. B. Imports. C. Exports. D. Net exports.
Suppose that imports and exports in an industry are $100 million and $200 million, respectively. Will the index of intra-industry trade for this industry rise, fall, or remain unchanged if exports fall to $100 million?
a. It will rise. b. It will fall. c. It will remain unchanged. d. There is not enough information to determine how the index will change.
Consumption expenditures
A. Are equal to consumer spending plus transfer payments. B. Account for over two-thirds of total spending. C. Are equal to disposable personal income plus personal saving. D. Include purchases of new and used goods by consumers.