Real business cycle theorists take the comovement of aggregate output and Solow residuals as strong confirmation that economic fluctuations are caused by ________
A) changes in aggregate demand
B) changes in the money supply
C) changes in the rate of inflation
D) productivity shocks
D
You might also like to view...
One dollar could be exchanged for 55 rupees in 2013 and for 60 rupees in 2014. This implies that the:
A) real exchange rate did not change in 2014. B) dollar appreciated in 2014. C) nominal exchange rate did not change in 2014. D) rupee appreciated in 2014.
Refer to Figure 11-11. For output rates greater than 20,000 picture frames per month
A) the firm will not make a profit because the average cost of production will be too high. B) the firm will experience diminishing returns. C) the short-run average total cost will equal the long-run average total cost of production. D) the firm will experience diseconomies of scale.
Labor unions
a. raise wages in unionized industries. b. create labor shortages in non-unionized industries. c. play a larger role in the current U.S. economy than in European countries such as Norway and Sweden. d. prefer to operate in states with right-to-work laws.
Which of the following is most likely to lead to financial trouble?
What will be an ideal response?