Which of the following is correct? A general assumption in real business cycle models is that
a. dissimilar individuals populate the economy.
b. the labor market does not clear.
c. the economy is populated by a group of identical individuals.
d. the economy experiences involuntary unemployment.
C
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A college must decide if it wants to offer more Internet-based classes. This decision involves answering the economic question of "what to produce."
Indicate whether the statement is true or false
An increase in the equilibrium price of Japanese yen per dollar could be caused by a(n):
A. increase in the general level of prices in Japan. B. increase in the U.S. demand for domestically-built automobiles. C. decrease in the U.S. income relative to the income in Japan. D. increase in the supply of dollars on the foreign market.
The change in AD is the same size as the change in equilibrium GDP if prices are held constant.
Answer the following statement true (T) or false (F)
The pollution tax in Figure 9.10:
A. reduces equilibrium output. B. reduces equilibrium price. C. increases supply. D. All of these