Business cycle fluctuations typically arise because
A.
The actual supply of goods and services ends up being more or less than what consumers were expecting
B.
The actual demand for goods and services ends up being more or less than the expected supply of goods and services
C.
The actual demand for goods and services ends up being more or less than what firms were expecting
D.
Prices tend to be flexible in the short run
C.
The actual demand for goods and services ends up being more or less than what firms were expecting
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The expenditure multiplier acts on changes in investment spending, government purchases, net exports, and autonomous consumption
a. True b. False
Conditions that likely contributed to a credit crunch during the global financial crisis include
A) capital shortfalls caused in part by falling real estate prices. B) regulated hikes in bank capital requirements. C) falling interest rates that raised interest rate risk, causing banks to choose to hold more capital. D) increases in reserve requirements.
Which of these represents an example of citizens who would not typically be counted as unemployed?
A) when your economics professor loses his job and gets a new one at McDonald's B) when your fourteen-year-old cousin loses her summer job in September C) when your neighbor has been out of work for so long that he decides to stay at home and write a novel D) all of the above E) none of the above
Which of the following statements concerning the short-run average cost curve of economic theory is true?
a. It is L-shaped b. It is ?-shaped c. It is ?-shaped d. It is ?-shaped e. It is M-shaped