Compared to Keynesians, Real Business Cycle theorists
a) have greater optimism regarding markets
b) give a larger role to stabilization policy
c) believe technology plays a relatively minor role in short run fluctuations
d) are more likely to claim that individuals are unresponsive to price changes
e) are relatively unconcerned with productivity shocks
a) have greater optimism regarding markets
You might also like to view...
The income effect explains why there is an inverse relationship between the price of a product and the quantity of the product demanded
Indicate whether the statement is true or false
Suppose the economy is suffering in a recessionary period. Firms are facing increasing inventories and individual consumers are increasing their saving to prepare for hard times ahead. What is likely to happen to the economy and can it correct itself and grow toward full employment in the short run?
How can a firm stay in business if it makes no economic profit in the long run?
What will be an ideal response?
If there is no change in price that can alter the quantity supplied, then the supply for the good is
A. perfectly inelastic. B. inelastic. C. perfectly unit elastic. D. perfectly elastic.