In the aggregate production function Y = A , real business cycle theory treats ________ as the key independent variable
A) potential output
B) productivity
C) the capital stock
D) the labor input
B
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A college graduate in 1972 found a job paying $7,200. The CPI was 0.418 in 1972. A college graduate in 2005 found a job paying $30,000. The CPI was 1.68 in 2005. The 1972 graduate's job paid ________ in nominal terms and ________ in real terms than the 2005 graduate's job.
A. more; more B. more; less C. less; more D. less, less
Today's exchange rate system can be described as
a. a fixed exchange rate system b. a freely floating exchange rate system c. a pegged exchange rate system d. a flexible exchange rate system e. a managed float
When businesses are cutting back production, then it probably true that
a. total spending is greater than total output. b. total output is greater than total income. c. total spending is less than total output. d. inventory levels are decreasing.
If a market situation is an example of a prisoners’ dilemma, society can benefit by preventing the firms in the market from cooperating with each other.
Answer the following statement true (T) or false (F)