One problem with real business cycle theory is that
A) it is more successful in explaining expansions than in explaining contractions.
B) it relies almost entirely on Keynes' original ideas, ignoring much of the progress made since then.
C) it treats government officials as well-meaning public servants, despite much evidence to the contrary.
D) it defines "productivity" in a new and not very intuitive way.
E) its models downplay the importance of technological progress in the economy.
A
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Which of the following statements about trade barriers is true?
A. The economic costs of trade barriers exceed their economic benefits, creating an efficiency loss for society. B. The economic benefits of trade barriers exceed their economic costs in developing nations. C. It is impossible to estimate the benefits of trade barriers. D. The economic costs and benefits of trade barriers are about equal.
For international trade to benefit a country, it must benefit all citizens of that country
a. True b. False Indicate whether the statement is true or false
Suppose there are five goods in the economy, A-E. The current-year quantity of each is 10A, 20B, 30C, 40D, and 50E. Current-year prices are $1 for each unit of A, $2 for each unit of B, $3 for each unit of C, $4 for each unit of D, and $5 for each unit of E. Base-year prices are $1 for each good. Real GDP in the current year equals _________ and GDP equals _________
A) $550; $150 B) $130; $530 C) $150; $550 D) $530; $130 E) none of the above
Ceteris paribus, if Canadians decide they want to eat more U.S.-grown soybeans, this causes the ________ U.S. currency to ________.
A. supply of; decrease B. demand for; decrease C. supply of; increase D. demand for; increase