Real business cycle theory argues that the primary cause of business cycles is fluctuations in
A) preferences.
B) government spending.
C) the importance of externalities.
D) total factor productivity.
D
You might also like to view...
Refer to Figure 21.2. If area A = 2,000, area B = 400, and area C = 2,600, what is the Gini coefficient for Urbania (rounded to two decimal places)?
A) 0.40 B) 0.43 C) 0.67 D) 0.77
Which of the following statements concerning the federal corporate income tax is true?
A) It is an efficient tax because it imposes a small excess burden relative to the tax revenue it raises. B) The corporate income tax is an example of the benefits-received principle. C) The incidence of the corporate income tax can be determined by using demand and supply analysis. D) Determining the incidence of the corporate income tax is complicated because it is not certain how corporations respond to the tax.
A budget surplus exists when
a. Tax receipts < government expenditures + transfers. b. Tax receipts > government expenditures + transfers. c. Government expenditures ? transfers > tax receipts. d. Government expenditures > transfers + tax receipts.
If the Fed sells more bonds to the public, then the money supply will:
A. Decrease and the aggregate demand curve will shift to the right. B. Increase and the aggregate demand curve will shift to the right. C. Increase and the aggregate demand curve will shift to the left. D. If the Fed sells more bonds to the public, then the money supply will shift to the left.