When RBC economists compare the correlations in their models to the data, what are they looking at?
A) The degree to which variables lead output over the business cycle
B) The strength of procyclicality of different variables
C) The amount of random variation in economic variables
D) The degree to which different economic variables move together
D
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Considering perfect competition, monopolistic competition, and monopoly, which of the market structures can have positive profits in the short run?
If the price of a commodity is above marginal cost, then the economy will tend to
A. overproduce the item. B. underproduce the item. C. produce the optimal amount of the item. D. overproduce and underproduce the item cyclically.
The Lorenz curve portrays:
A. the functional distribution of income. B. the ratio of labor to capitalist income. C. the personal distribution of income. D. income equality.
Consider the market for the normal good hotdogs. Suppose the number of hotdog consumers increases and the wages of hotdog workers decreases. Once equilibrium is re-established in the market it can be predicted that the equilibrium price of hotdogs will ___
Fill in the blank(s) with the appropriate word(s).