What is "real business cycle theory"?
A) Outside shocks disrupt the economy and require government action to stabilize expectations.
B) The most important shocks to the economy come from technological change.
C) The most important shocks to the economy come from government policy mistakes.
D) Business cycles are caused by the internal dynamics of capitalism.
Correct Answer:
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Q6: What is a business cycle?
A) The length
Q7: What is an "expansion?"
A) An increase in
Q8: What is a "contraction"?
A) A downturn in
Q9: During the twentieth century, the United States
Q10: Robert Lucas, a well-known University of Chicago
Q12: How are profits calculated?
A) Profits = Revenue-Costs
B)
Q13: According to Progressives, what is the most
Q14: According to Progressives, what happens during a
Q15: According to Progressives, what causes the expansion
Q16: According to Progressives, what is occurring at
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