According to the real business cycle theory, ________ decrease the marginal product of labor, which causes real wages and output to decrease.
A. decreases in the money supply
B. negative technology shocks
C. positive technology shocks
D. increases in the money supply
Answer: B
Economics
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Rent-seeking behavior, unlike profit-maximizing behavior in competitive markets, wastes society's scarce resources
Indicate whether the statement is true or false
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If a firm has a capital stock of $50,000 and employs 200 workers, its capital-labor ratio is
a. $1/250 b. 4 percent c. 250 percent d. $10,000,000 e. $250
Economics