Real business cycle (RBC) theory predicts that the main source of economic fluctuations is represented by
Answer: changes in the growth rate of productivity.
You might also like to view...
Starting from long-run equilibrium, a large increase in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; potential B. recessionary; higher; potential C. recessionary; lower; lower D. expansionary; higher; higher
What do mainstream economists consider to be one cause of economic instability?
A. changes in the money supply B. changes in resource availability C. instability in expenditures D. government intervention
Which of the following statements is true?
A) If both demand and supply increase there must be an increase in equilibrium price; equilibrium quantity may either increase or decrease. B) An increase in supply causes a change in equilibrium price; the change in price does not cause a further change in demand or supply. C) If demand decreases and supply increases one cannot determine if equilibrium price will increase or decrease without knowing which change is greater. D) A decrease in supply causes equilibrium price to rise; the increase in price then results in a decrease in demand.
If the golfers at Green Golf have nonidentical demands, the profit-maximizing user fee is ________ Green Golf's marginal cost.
A) one-half of B) less than C) equal to D) greater than