When economists use the term real business cycle theory they are suggesting that business cycles are caused by ?

Related Mcqs:

The classical model of macroeconomics assumes ?

A. wages and prices are sticky B. wages and prices are flexible C. the economy may operate below full capacity D. the economy is always at full capacity E. A and C F. B and D...

If a person thinks they are better off after a 10% wage increase, and all prices have risen 10% then they are experiencing ?

A. inflation B. a supply shock C. crowding out D. inflation illusion...

If input price prices adjusted very rapidly to output prices as classical economists argue the Philips curve would be ?

A. Vertical or nearly vertical B. upward sloping C. downward sloping D. horizontal or nearly horizontal...

Doubts about the natural and the existences of the Phillips curve arose in the 1970s when the economy experienced ?

A. a high rate of inflation: along with a low rate of unemployment B. simultaneously low rates of inflation and unemployment C. simultaneously high rates of inflation and unemployment D. a high rate of unemployment along with a low rate of inflation...

The relative-wage explanation for the existence of downwardly sticky wages emphasizes ?

A. the contention that workers in one industry may be unwilling to accept a wage cut unless they know that workers in other industries are receiving similar cuts B. employment contracts that stipulate workers’ wages usually for a period of one to three years C. unspoken agreements between workers and firms that firms will not … The relative-wage explanation for the existence of downwardly sticky wages emphasizes ?Read More...