The mainstream view of macro instability is that:
A. changes in the money supply directly cause changes in aggregate demand and thus cause
changes in real GDP.
B. changes in investment shift the aggregate demand curve and thus cause changes in real
GDP.
C. bursts of innovation put the economy on an unsustainable growth path, eventually
producing recession.
D. changes in technology and resource availability are the two main sources of fluctuations of
real GDP.
B. changes in investment shift the aggregate demand curve and thus cause changes in real
GDP.
You might also like to view...
Tom's marginal utility of Mountain Dew exceeds his marginal utility of crackers at his consumer equilibrium. Therefore, his consumer surplus from Mountain Dew must exceed his consumer surplus from crackers
Indicate whether the statement is true or false
Equalization of resources across school districts would be less of a concern if _____
a. there was no link between spending and achievement b. there was a strong link between spending and achievement c. classroom teachers were better paid d. taxpayers were willing to spend more
The economist who argued that most prices in a mixed economy are set by the nation's largest corporations was
A. Adam Smith. B. Karl Marx. C. John Maynard Keynes. D. John Kenneth Galbraith.
The market for economists in Greenland has recently experienced an increase in the number of economists employed and an increase in the wage paid to economists. What could have generated such a change?
A. The demand for economists remained unchanged while the supply of economists decreased. B. The demand for economists recently decreased while the supply of economists remained unchanged. C. The demand for economists recently decreased while the supply of economists recently increased. D. The demand for economists remained unchanged while the supply of economists increased. E. The demand for economists recently increased while the supply of economists remained unchanged.