According to real business cycle models,
A) the economy is normally at potential GDP.
B) unexpected changes in monetary policy are the major source of fluctuations in real GDP.
C) the long-run Phillips curve is negatively sloped.
D) the economy is normally operating below the natural rate of unemployment.
A
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There are four firms in the cement industry in Richland. Firm A has a market share of 30%, Firm B has a market share of 20%, Firm C has a market share of 25%, and Firm D has a market share of 25%
The Herfindahl-Hirschman Index for the cement industry is ________. A) 50 B) 100 C) 2,550 D) 4,000
Which of the following makes it more likely that a country will get caught in a vicious circle of debt financing, higher taxes, and sluggish growth?
a. Politicians like to raise taxes, but they are reluctant to spend on education, health care, and roads. b. High levels of debt will eventually lead to higher taxes just to pay the interest on the debt, but high taxes will slow economic growth. c. As outstanding debt increases, politicians will be reluctant to run budget deficits, which will cause the economy to slow. d. As outstanding debt increases, short-sighted politicians will want to run large budget surpluses in order to pay off the national debt quickly.
Most of the change from 1991 to 2000 in U.S. net capital outflow as a percent of GDP was due to a(n)
a. decrease in U.S. investment. b. decrease in U.S. national saving. c. increase in U.S. investment. d. increase in U.S. national saving.
Government's role of providing national defense is considered:
A) enforcing a legal system. B) providing certain goods and services. C) redistributing income. D) expanding economic growth.