If the quantity of cookies purchased decreases by 30 percent as the result of a 15 percent increase in the price of oranges, the absolute value of the price elasticity of demand for cookies is

The real business cycle theory and the new classical theory agree that

a. business cycles are driven by changes in aggregate demand. b. expectations are formed rationally. c. imperfect information plays a big role in business cycles. d. none of the above.

Macroeconomics is best defined by which of the following statements?

A) Macroeconomics is the study of how firms attempt to maximize profits. B) Macroeconomics is the study of the behavior of the economy as a whole. C) Macroeconomics is the study of individual households. D) Macroeconomics is the study of how the prices of individual goods are determined.