The major criticism of real business cycle models is
A) positive technology shocks actually push real GDP above the economy's potential GDP.
B) this model relies too heavily on monetary explanations for fluctuations in real GDP.
C) negative technology shocks actually push real GDP below the economy's potential GDP
D) negative technology shocks are uncommon and can't explain all business cycle fluctuations.
D
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Which of the following reasons describes the fundamental barrier to entry for the monopoly in the figure?
A) monopoly resources B) government regulation C) the production process D) Both a and b are correct.
The intention of a price ceiling is to help consumers by forcing a price that is below the equilibrium price. What is one unintended consequence of this policy?
A. Consumers face a shortage of the good and decreased consumer surplus. B. Foreign producers are hurt by the lower price and economic surplus is increased. C. Producers face a shortage or resources and economic surplus is decreased. D. Consumers face a shortage of the good and increased consumer surplus.
Foreign exchange is traded:
a. weekly on the Internet in special auctions arranged by the Federal Reserve. b. continuously all over the world 24 hours a day and seven days a week. c. only in officially designated trading centers such as London or New York. d. It is traded in none of these ways or venues.
In the market for euros, the demand for euros (€) is
A) downward sloping, because at lower dollar prices for the euro, U.S. residents will buy more European goods and services. B) upward sloping, because at higher dollar prices for the euro, U.S. residents will buy more European goods and services. C) upward sloping, because at higher dollar prices for the euro, Europeans will buy more U.S. goods and services. D) horizontal, because dollar prices of euros and euro prices of dollars are directly related.