Real business cycle models argue that fluctuations in real GDP are caused by unanticipated changes in the money supply
Indicate whether the statement is true or false
FALSE
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Long-term increases in productivity that have increased the demand for labor, and raised real wages, have resulted primarily from ________ and ________.
A. a modernized capital stock; an increased labor supply B. a modernized capital stock; skill-biased technological change C. technological progress; a modernized capital stock D. technological progress; an increased labor supply
A price elasticity (ED) of ?1.50 indicates that for a ____ increase in price, quantity demanded will ____ by ____
a. one percent; increase; 1.50 units b. one unit; increase; 1.50 units c. one percent; decrease; 1.50 percent d. one unit; decrease; 1.50 percent e. ten percent; increase; fifteen percent
When a tax is imposed on buyers, consumer surplus and producer surplus both decrease
a. True b. False Indicate whether the statement is true or false
If the price of labor increases, the typical perfectly competitive firm in the short run will
A) produce more output. B) hire less labor. C) hire the same labor and produce the same output. D) hire more labor.