Which of the following statements is true about causes of business cycle fluctuations?
A. Economists all agree that supply shocks are the cause of most business cycle fluctuations.
B. Economists all agree that productivity shocks are the cause of most business cycle
changes.
C. Economists all agree that monetary changes are primarily responsible for business cycle
fluctuations.
D. There are a wide range of theories as to the underlying causes of business cycle
movements.
D. There are a wide range of theories as to the underlying causes of business cycle
movements.
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In the figure above, the SLF curve is the supply of loanable funds curve and the PSLF curve is the private supply of loanable funds curve. The equilibrium interest rate is ________ percent and the equilibrium quantity of loanable funds is ________
A) 6; $1.6 trillion B) 4; $1.8 trillion C) 4; $1.4 trillion D) 6; $2.0 trillion E) 4; $2.0 trillion
When her income increased from $10,000 to $20,000 . Heather's consumption of macaroni decreased from 10 pounds to 5 pounds and her consumption of soy-burgers increased from 2 pounds to 4 pounds. We can conclude that for Heather, macaroni
a. and soy-burgers are both normal goods with income elasticities equal to 1. b. is an inferior good and soy-burgers are normal goods; both have income elasticities of 1. c. is an inferior good with an income elasticity of -1 and soy-burgers are normal goods with an income elasticity of 1. d. and soy-burgers are both inferior goods with income elasticities equal to -1.
Which of the following is definitely true when nominal GDP increases?
A. The standard of living improves. B. The amount of output increases. C. The value of output increases. D. The production possibilities curve shifts outward.
In one day, Sue can change the oil on 20 cars or change the tires on 20 cars. In one day, Fred can change the oil on 20 cars or change the tires on 10 cars
Sue's opportunity cost of changing oil is ________ than Fred's and her opportunity cost for changing tires is ________ than Fred's. A) greater; less B) less; greater C) less; less D) greater; greater