The idea that business fluctuations are primarily caused by factors affecting aggregate supply rather than aggregate demand is a central tenet of

A. efficiency wage theory.
B. mainstream economics.
C. real business cycle theory.
D. monetarism.

Answer: C

Economics

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Last year, the nominal interest rate was less than the anticipated rate of inflation

A) This means that not enough loans were made by banks. B) This means that the real interest rate was negative. C) This means that the real interest rate was very high. D) This scenario is not possible.

Economics

The Cold War

A) hampered globalization because it created a political barrier between countries which reduced the likelihood that those countries would engage in trade with one another. B) enhanced globalization because it helped to encourage countries to engage in trade with one another. C) ended with the building of the Berlin Wall in the early 1960s. D) a and c

Economics