According to real business cycle theory, business cycles
a. can be eliminated with appropriate monetary and fiscal policy.
b. are natural and efficient reactions to changes in productivity.
c. do not occur.
d. occur infrequently.
e. none of the above.
B
You might also like to view...
To maximize its profits, a monopsonist will hire labor the quantity of labor at which marginal revenue product of labor
a. is downward sloping and equal to the market wage rate. b. is downward sloping and equal to its marginal labor cost. c. minus marginal labor cost is maximized. d. is maximized.
According to this Application, in exchange for the federal government absolving their debts, the states were willing to give up their ability to raise revenue from collecting
A) property taxes. B) income taxes. C) import tariffs. D) all of the above.
Refer to Figure 2.1. At point E, demand is:
A) completely inelastic. B) inelastic, but not completely inelastic. C) unit elastic. D) elastic, but not infinitely elastic. E) infinitely elastic.
The financial liability that makes the real economy function smoothly for its liquidity and its acceptability is called:
A. bonds. B. stocks. C. money. D. mortgages.