Christina Romer's estimates of the business cycles prior to World War II showed that the business cycle
A) had greater fluctuations before World War II than previous estimates had shown.
B) had smaller fluctuations before World War II than previously estimated.
C) had smaller fluctuations before World War II than after World War II.
D) had larger fluctuations after World War II than had been previously measured.
B
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Keynes's model of the demand for money suggests that velocity is
A) constant. B) positively related to interest rates. C) negatively related to interest rates. D) positively related to bond values.
Figure 2-5 shows five different combinations of rockets and cruise ships that a country could manufacture. Suppose it decided to produce 18 rockets and 12 cruise ships. Which of the following would be true?
a. This combination could not be produced.
b. The country will be at point B.
c. The country will be at point C.
d. The country will not be fully utilizing its resources.
e. The country will be at the midpoint of points B and D.
Refer to the accompanying graph. If this firm is a price taker and the price of each unit of output is $9, then this firm should:
A. produce 45 units of output. B. raise its price to increase its revenue. C. lower its output to decrease its marginal cost. D. shut down in the short run.
All points on the production possibilities curve:
A.) Represent the use of all available resources. B.) Are equally desirable. C.) Represent the same mix of output. D.) Represent the same opportunity costs.