Which is not a cause for business cycles considered by macroeconomists?

If the amount paid as unemployment benefits decreases, the opportunity cost of job search

A) falls and people stay unemployed for a shorter time. B) rises and people would stay unemployed longer. C) rises and people stay unemployed for a shorter time. D) falls and people stay unemployed for a longer time. E) is not affected because unemployment benefits do not change job availability.

Refer to Figure 7.1. Suppose that instead of $350, Angus earns only $250 by playing the bagpipes, but all other earnings remain the same. If there is no ordinance against loud music, property rights belong to

A) Angus. B) Dudley. C) no one. D) both Angus and Dudley.