While Schumpeter's view that clusters of innovations can set off an innovation cycle is quite different from the views held by real business cycle theorists, they both
a. believe that cycles are not inevitable but the result of historical accidents
b. believe that cycles are inherent and inevitable
c. they both focus their analyses on technological change
d. view the interaction of the multiplier and accelerator as the key factor prolonging the innovation cycle
e. advocate strong countercyclical fiscal policy as a means of creating a more stable growth path for the economy
C
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The relationship between the unemployment rate and the natural unemployment rate is that the unemployment rate
A) fluctuates about the natural rate. B) equals the natural rate. C) is always below the natural rate. D) is always above the natural rate.
Most of the day-to-day power in monetary policy decisions lies with
A) the President of the United States. B) the Senate Banking Committee. C) the chairman of the Board of Governors. D) large commercial banks.