According to your authors, the "boom" phase of the so-called "business cycle" is
A) caused by an expansionary increase of the money supply.
B) a systematic accumulation of mistakes among businesses and households across the economy.
C) undertaken because business planners miscalculate the expected profitability of their new ventures.
D) ultimately followed by a recessionary "bust" as people begin to correct for the mistakes they've made during the boom phase of the cycle.
E) described correctly by all of the above statements.
E
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If all inputs are increased by 5 percent and output increases by 8 percent, then the
A) firm experiences constant returns to scale. B) long-run average cost curve slopes downward. C) long-run average cost curve shifts downward. D) firm experiences diseconomies of scale.
During the postbellum period of U.S. history,
(a) the U.S. balance of payments experienced a deficit throughout the entire period. (b) manufacturing exports became the top foreign exchange earner. (c) cotton exports continued to be the top foreign exchange earner. (d) the U.S. never borrowed from foreigners.