The economic theory that emphasizes the role of difficulties in coordinating economic affairs as a cause of economic fluctuations is known as
A) investment cycle theory. B) real business cycle theory.
C) technology shock theory. D) Keynesian economics.
D
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The expansion of capital that can occur in the long-run but not, by definition, in the short-run, means that the long-run supply is
a. perfectly horizontal while the short-run supply curve is upward sloping. b. sloping downwards while the short-run supply curve is upward sloping. c. less elastic than the short-run supply curve. d. more elastic than the short-run supply curve.
Asymmetric information is a situation in which ________ parties to a transaction have relevant private information that is ________ to the other parties.
A) all; unknown B) some; unknown C) some; known D) all; known
A variable cost is one that changes
a. in the long run only b. in the short run only c. year to year d. month to month e. as output changes
If people hold onto money as cash rather than depositing it, the money multiplier will:
A. get larger. B. stay the same. C. be increased by the Federal Reserve. D. get smaller.