Changes in total factor productivity are plausible causes of business cycles because
A) of the welfare theorems.
B) the U.S. government is following supply-side economic policy.
C) the model matches many stylized facts.
D) prices are countercyclical.
C
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Suppose that last week 100,000 people lost their jobs or quit. We can say that
A) the number of unemployed increased by less than 100,000 people because we should not count those who quit their jobs. B) the 100,000 people represent a stock known as the new unemployed. C) the number of unemployed increased by 100,000 people. D) the 100,000 people represent a flow known as job departures.
Suppose the market-clearing price of wheat is $2.50 per bushel. At a price below $2.50,
A) supply would equal demand. B) quantity supplied would equal quantity demanded. C) quantity supplied would exceed quantity demanded. D) quantity supplied would be less than quantity demanded.