A usual assumption in real business cycle models is that the economy is populated by a group of identical individuals and the behavior of the group can then be explained in terms of the behavior of one individual, called a(n)
a. maximizing agent.
b. representative agent.
c. republican agent.
d. informative agent.
e. democratic agent
B
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If skilled and unskilled labor are substitutes, then an increased minimum wage would tend to
A) reduce the demand for both unskilled and skilled workers. B) reduce the quantity demanded of unskilled workers and increase the demand for skilled workers. C) reduce the demand for unskilled workers and increase the quantity demanded of unskilled workers. D) reduce the quantity demanded for both unskilled and skilled workers.
In the one-period competitive model we have been studying
A) both consumption and total factor productivity are exogenous. B) consumption is exogenous and total factor productivity is endogenous. C) consumption is endogenous and total factor productivity is exogenous. D) both consumption and total factor productivity are endogenous.
The theory of liquidity preference was developed by Irving Fisher
Indicate whether the statement is true or false a. True b. False
Which of the following statements is false?
(a) Automatic stabilisers reduce the impact of economic shocks that arise from cyclical fluctuations. (b) Automatic stabilisers are deliberately put in place by government e.g. increase in jobseekers allowance. (c) Automatic stabilisers "kick in" when required and do not require deliberate action by government at the time of the economic shock. (d) All of the above are false.