For most firms in the economy, the largest part of factor costs is the cost of

The theory that real shocks to the economy are the primary cause of business cycles is

A) monetarism. B) Keynesian theory. C) real business cycle theory. D) Hamiltonian theory.

If expectations about inflation are adaptive, they are ________

A) formed by looking at the future B) likely to change rapidly C) based on past inflation D) all of the above E) none of the above