Name the four factors of production that determine the quantity of real GDP supplied. Which one fluctuates the most over the course of the business cycle?
What will be an ideal response?
The factors are the quantity of labor employed, the quantities of capital and human capital and the technologies they employ, the quantities of land and natural resources, and the amount of entrepreneurial talent available. Over the course of a business cycle, the quantity of labor employed fluctuates the most.
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A critical assumption in the model of demand and supply is the independence of the demand and supply curves. If the two are not independent from each other, a shift in the supply curve can lead to a shift in the demand curve referred to as:
a. supply-side economics. b. ceteris paribus. c. supply shocks. d. supplier-induced demand. e. the fallacy of supply.
The terms business cycle and structural stagnation can be used interchangeably.
Answer the following statement true (T) or false (F)
Which of the following is true about private goods?
A. They are rival in consumption. B. They can have external benefits. C. They are consumed by a single person or household. D. All of these are true.
The Bretton Woods exchange rate system was an example of a
A) managed float. B) pure gold standard. C) modified gold standard. D) floating exchange rate system.