The real business cycle theory and the new classical theory agree that
a. business cycles are driven by changes in aggregate demand.
b. expectations are formed rationally.
c. imperfect information plays a big role in business cycles.
d. none of the above.
B
Economics
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When a binding price floor is imposed on a market, a. price no longer serves as a rationing device
b. the quantity supplied at the price floor exceeds the quantity that would have been supplied without the price floor. c. only some sellers benefit. d. All of the above are correct.
Economics
The main function of the Federal Reserve System is to
A. clear checks from member banks. B. set reserve requirements of banks. C. control the money supply. D. serve as the fiscal agent for the federal government.
Economics