Critics of real business cycle theory doubt the plausibility of ________
A) intertemporal substitution
B) negative productivity shocks
C) adaptive expectations
D) a trade-off between work and leisure
B
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Exchange rate changes are
A) not very volatile because of offsetting changes in demand and supply. B) very volatile because supply and demand changes reinforce each other. C) infrequent because the exchange rate rarely changes. D) not very volatile because of government intervention. E) very volatile because of government intervention in the market.
Taxes on polluting firms have
a. been tried, but not successfully. b. been successful in Germany in reducing water pollution. c. resulted in bankruptcy of the affected firms. d. never been tried to see if they work.
The expansionary phase of the business cycle is characterized by
a. decreasing real output and increasing unemployment. b. decreasing real output and declining unemployment. c. increasing real output and increasing unemployment. d. increasing real output and declining unemployment.
When equilibrium price is higher than market price, quantity demanded is ________ quantity supplied.
Fill in the blank(s) with the appropriate word(s).