The real business cycle model replicates the key business cycle regularities
A) both qualitatively and quantitatively.
B) qualitatively but not quantitatively.
C) quantitatively but not qualitatively.
D) neither qualitatively nor quantitatively.
A
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If the price of a CD is equal to the equilibrium price, there will be ________ of CDs and the price will ________
A) surplus; rise B) surplus; fall C) shortage; fall D) neither a shortage nor surplus; not change
The Clayton Act of 1914 prohibits ________ if it substantially lessens competition or creates a monopoly
A) people from serving on the board of directors of competing firms B) contracts that force other goods to be bought from the same firm C) both of the above D) neither of the above
If the marginal propensity to consume (MPC) is 0.8 and there is a desire to increase real GDP by $500 billion, then
A) an increase in autonomous real consumption spending of $500 billion will generate this change. B) a decrease in autonomous real saving of $500 billion will generate this change. C) an increase in planned real investment spending of $200 billion will generate this change. D) an increase in real autonomous spending of $100 billion will generate this change.
When a demand curve is expressed in log-linear form, such as log(Q) = a - b log(P) + b2 log(P2) + c log(I), the coefficients of the demand determinants correspond to:
A. changes in determinants other than price. B. the parameters that may fluctuate in value. C. the independent variables in the model. D. the elasticity values of those determinants.