The real business cycle theory holds that business fluctuations are caused by
A. "stop-and-go" monetary policies.
B. factors affecting aggregate demand.
C. significant changes in technology and resource availability.
D. incorrectly anticipated government stabilization policies.
Answer: C
You might also like to view...
The trends displayed in the table can best be explained by
A) service industries have increased as a proportion of the economy and they tend to have higher nominal wage rates. B) the inflation rate has been rising over the time period. C) the real wage rate has increased at a rate about equal to the inflation rate. D) the nominal wage rate has increased at a rate about equal to the inflation rate. E) None of the above can explain the trends in the figure.
If the government decreases the tax on cell phones, ________
A) the deadweight loss decreases B) the consumer surplus does not change because sellers will not lower the price of a cell phone C) the number of cell phones purchased does not change D) the market becomes less efficient because the government collects less tax revenue