According to real business cycle theorists
a. technology creates unemployment by displacing labor and this can spark the beginning of an economy's downturn
b. firms that don't adopt the new, available technology cannot compete with firms that do and end up being driven out of business
c. business cycles are inevitable because technological change is inevitable
d. technology displaces labor, which reduces labor productivity which causes prices, profit, and GDP to fall
e. technology displaces labor, increases labor productivity, and raises prices and profit, which stimulates firms to create even more technology
B
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Because the sale of goods and services generates income for the sellers,
A) GDP is unaffected by such exchanges. B) national income will usually by greater than GDP. C) national income will essentially equal GDP. D) national income will increase, but GDP will decrease. E) sales taxes must be subtracted from GDP.
The Patient Protection and Affordable Care Act (ACA) is scheduled to be fully implemented by 2019, at which point
A) more than 30 million additional individuals are expected to have health care coverage. B) all hospitals in the United States will be taken over by the federal government. C) private health insurance companies will no longer exist in the United States. D) current budget cuts are expected to have completely offset the cost of the program.
Individual investors can reduce transactions costs by
A) buying common stock rather than bonds. B) combining their purchases through an intermediary. C) common stocks directly, rather than through a mutual fund. D) making loans directly, rather than depositing funds in a bank.
Consider a competitive market where the demand and the supply depend on the current price of the good. Then fitting a line through the quantity-price outcomes will
A) give you an estimate of the demand curve. B) estimate neither a demand curve nor a supply curve. C) enable you to calculate the price elasticity of supply. D) give you the exogenous part of the demand in the first stage of TSLS.