Real business cycle theory suggests that ____ not important in explaining short-term fluctuations around actual output ?

Related Mcqs:

1. If the economy is in the expansionary phase of the business cycle, aggregate demand ____ unemployment ____ inflation ____ payments is likely to move towards ____?

   A. falls; rise; falls; surplus B. is static; low; rise; deficit; C. falls; falls; falls; surplus D. rise; falls; rises; deficit...

2. 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...

3. The business cycle describes fluctuations in output around the?

   A. trend path of output B. boom C. recession D. short-run fluctuations in output...

4. 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...

5. 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...

6. If in Pakistan real GDP/person in 2004 is Rs18,073 and real GDP/person is 2005 is Rs18,635 What is the growth rate of real output per person over this period ?

   A. 3.1 percent B. 3.0 percent C. 18.6 percent D. 18.0 percent...

7. If the economy is in the recessionary phase of the business cycle, aggregate demand ___ unemployment ____ inflation ___ and the current account of the balance of payments is likely to move towards ____?

   A. falls; falls; falls; surplus B. is static; low; rises; deficit C. falls; rises; falls; surplus D. rises; falls; rises; deficit...

8. Short-run equilibrium output means that aggregate demand __________ actual output?

   A. is less than B. equals C. is greater than D. fluctuates around...

9. 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...

10. The substitution effect of a rise in the price of labour will ____ the quantity of labour and the output, effect will ____ it

    A. increase; increase B. increase; reduce C. reduce; reduce D. reduce; increase...