Real business cycle (RBC) theory predicts that the main source of economic fluctuations is represented by

The quantity theory of inflation indicates that the inflation rate equals

A) the growth rate of the money supply minus the growth rate of aggregate output. B) the level of the money supply minus the level of aggregate output. C) the growth rate of the money supply plus the growth rate of aggregate output. D) the level of the money supply plus the level of aggregate output.

For which of the following medical goods or services is the income elasticity of demand largest?

a. Emergency services after a car accident. b. Measles shots. c. Physical examinations for life insurance applications. d. Medical tests to diagnose specific symptoms. e. Face-lifts.