Real-business-cycle theory suggests that changes in:
A. Monetary policy is the single most important cause of macroeconomic instability
B. Investment spending will have a direct and significant effect on aggregate demand
C. Technology and resources affect productivity, and thus the long-run growth of aggregate supply
D. The velocity of money is gradual and predictable, and thus is able to accommodate the long-run changes in nominal GDP
C. Technology and resources affect productivity, and thus the long-run growth of aggregate supply
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If one euro is equal to 0. 60 U.S. dollars, what would be the euro price of a car that costs $10,000?
A. 10,000 euros. B. 60,000 euros. C. 5,000 euros. D. 16,667 euros.
Inflation is a measure of the ________ of prices; the CPI is a measure of the ________ of prices.
A. current level; rate of change in the level B. base year's level; index C. rate of change in the level; current level D. index; base year's level
Refer to the information provided in Figure 6.8 below to answer the question(s) that follow.
Figure 6.8Refer to Figure 6.8. The total utility of the three movies is ________ and the marginal utility of the third movie is ________.
A. 25; 10 B. 15; 0 C. 28; 3 D. 0; 0
When a firm issues new shares of stock
A. it lessens the relative value of its net worth. B. it does not add to its debt. C. it increases its debt load. D. it must buy back existing shares of stock in return.