According to Real Business Cycle theory,
a) lack of consumer confidence causes most business cycles
b) price fluctuations are unimportant because they affect nominal, not real GDP
c) recessions are an optimal response to negative technology shocks
d) fiscal policy is the most appropriate way to smooth out economic fluctuations
e) labor supply curves are extremely steep
c) recessions are an optimal response to negative technology shocks
Economics
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What do economists mean when they say that "there is no such thing as a free lunch?"
What will be an ideal response?
Economics
Which of the following statements about M1 and M2 is not true?
A. M2 is larger than M1. B. M2 is more liquid than M1. C. Transaction accounts are part of M2. D. Transaction accounts are part of M1.
Economics