A. trend path of output
B. boom
C. recession
D. short-run fluctuations in output
Related Mcqs:
- Real business cycle theory suggests that ____ not important in explaining short-term fluctuations around actual output ?
A. aggregate supply is
B. aggregate demand is
C. potential output is
D. real variables are - Currency speculation is _____ if speculators bet against market forces that cause exchange fluctuations, thus moderating such fluctuations ?
A. destabilizing
B. stabilizing
C. inflationary
D. deflationary - Real business cycle theorists argue that _________ can explain short- and long-term fluctuation in output?
A. imperfect labor markets
B. rational expectations
C. intertertemporal decisions of households, firms and government
D. sun spot cycles - When economists use the term real business cycle theory they are suggesting that business cycles are caused by ?
A. Shifts in aggregate supply
B. changes in export demand due to the state of the world economy
C. business confidence
D. business expectations - With whom would you associate the following quote” The business of business is business” ?
A. Milton Friedman
B. Adam smith
C. Alfred Marshal
D. Karl Marx - Suppose that the supply curve of tin is highly inelastic. If the demand curve of tin decrease and increase cyclically along the supply curve of tin, then in this market the size of the quantity fluctuation will bathe size of the price fluctuations ?
A. relatively greater than
B. relatively less than
C. the same as
D. Any of the above - Suppose that the demand curve for tin is highly inelastic. If the supply curve of tin decrease and increase cyclically along the demand curve for tin then in this market the size of the price fluctuation will be __________ the size of the quantity fluctuations?
A. relatively greater then
B. relatively less than
C. the same as
D. any of the above - Which of the following statements about economic fluctuations is true ?
A. None of these answers
B. A depression is a mild recession
C. A variety of spending income, and output measures can be used to measure economic fluctuation because most macroeconomic quantitties tend to fluctuate together
D. A recession is when output rises above the natural rate of output - Which exchange rate system involves a leaning against the wind|| strategy in which short-term fluctuations in exchange rates are reduced without adhering to any particular exchange rate over the long run ?
A. pegged of fixed exchange rates
B. adjustable pegged exchange rates
C. managed floating exchange rates
D. free floating exchange rates - The purchasing power parity theory has limitations in forecasting exchange rate fluctuations for all of the following reasons except ?
A. inflation effects exchange rates
B. international capital flows affect exchange rates
C. governments sometimes impose trade restrictions such as tariffs and quotas
D. not all products are internationally tradeable
