The theory that real shocks to the economy are the primary cause of business cycles is
A) monetarism.
B) Keynesian theory.
C) real business cycle theory.
D) Hamiltonian theory.
C
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Suppose the government establishes a price support for soybeans. The new government program will tend to
A) decrease the output of soybeans. B) increase the quantity demanded of soybeans. C) decrease the demand for soybeans. D) increase a farmer's opportunity cost of producing other commodities (such as corn), which could be grown on the same land used to grow soybeans. E) do none of the above.
The quantity of money is $1 billion, the price level is 1.10, and real GDP is $10 billion. What is the velocity of circulation?
What will be an ideal response?
Free trade agreements between the United States and Canada started with the auto industry in the year 1965
Indicate whether the statement is true or false
Refer to the data provided in Table 16.4 below to answer the following question(s).Table 16.4 shows the situation facing two firms, both of which are polluting. Assume that each firm emits 5 units of pollution.Table 16.4Firm AFirm AFirm AFirm BFirm BFirm BReduction of Pollution by Firm AMC of reducing pollution for Firm ATC of reducing pollution for Firm AReduction of Pollution by Firm BMC of reducing pollution for Firm BTC of reducing pollution for Firm B1$2$21$16$162 6 82 24 4031220332 724204044011253070548160Refer to Table 16.4. Suppose the government wants to reduce the total amount of pollution from the current level of 10 to 4. To do this, the government caps each firm's emissions at 2 units and issues 2 permits to each firm. If firms are allowed to trade permits, what
is the total cost of the pollution reduction? A. $48 B. $80 C. $86 D. $162