A. potential output
B. actual output
C. real output
D. international trade
Related Mcqs:
- 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 - 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 - The theory that explains business cycles by the dynamic interaction of consumption and investment demand is the ?
A. sun spot theory
B. multiplier accelerator model
C. Solow theory
D. New classical theory - 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 - When real income increases other things equal we can expect the demand for real money holdings to ?
A. fall
B. not change
C. increase
D. None of these - Assume that the real income of developing Island increases from $120,000 to $160,000 from 2005 to 2006 while its population expands from 1000 to 1100 during the same period Real income per capita has increased by about ?
A. $145
B. $40,000
C. $25
D. $100 - 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 - 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 - Real business cycle theories suggest that _____ to correct departures from the desired growth path?
A. There is a role for fiscal policy
B. There is a role for monetary policy
C. There is a role for supply-side policy
D. There is a role for stabilizing output ever the business cycle - In terms of special product life cycles a ________ is a basic and distinctive mode expression?
A. genre
B. style
C. fashion
D. fad
