While Schumpeter's view that clusters of innovations can set off an innovation cycle is quite different from the views held by real business cycle theorists, they both
a. believe that cycles are not inevitable but the result of historical accidents
b. believe that cycles are inherent and inevitable
c. they both focus their analyses on technological change
d. view the interaction of the multiplier and accelerator as the key factor prolonging the innovation cycle
e. advocate strong countercyclical fiscal policy as a means of creating a more stable growth path for the economy
C
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When a market has barriers to entry,
A) then in the long run it is possible for the firms to incur economic losses. B) then in the long run the only possible outcome for the firms is zero economic profit. C) then in the long run it might be possible for the firms to make economic profits. D) oligopolies cannot be created. E) the HHI almost always falls below 1,000.
The interest rate is 5 percent. How does $500 to be received a year from today compare in value to $500 right now?
What will be an ideal response?
Keynes argued that when interest rates were high relative to some normal value, people would expect bond prices to ________, so the quantity of money demanded would ________
A) increase; increase B) increase; decrease C) decrease; decrease D) decrease; increase
Which of the following is FALSE regarding bilateral monopoly?
A) Bilateral monopoly is a market structure consisting of a monopolist and a monopsonist. B) Bilateral monopoly is defined as a market structure in which a single buyer faces a single seller. C) An example of bilateral monopoly is a state education employer facing a single teachers' union in the labor market. D) The price outcome is easily determined.