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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 policyD. There is a role for stabilizing output ever the business cycle
The impossibility of negative gross investment provides a ______ to fluctuation in ______? A. ceiling, stock building B. ceiling, capital pricesC. floor, output D. floor, the capital-output ratio
The multiplier accelerator model assumes ____ depends on ______? A. consumption expected future profits B. investment, interest ratesC. investment expected future profits D. stock building interest rates
All of the following are parts of the business cycle except ? A. boom B. slump C. recoveryD. acceleration
The business cycle describes fluctuations in output around the? A. trend path of output B. boom C. recession D. short-run fluctuations in output
The neoclassical theory of growth identifier the steady state rate of growth as the ____ just sufficient to keep _____ constant while labor grows? A. saving, investment B. capital per person, productivity C. labor growth, outputD. investment capital per person
GDP per head may be an imperfect measure of economic welfare because it excludes ? A. the value of leisure B. Externalities C. Untraded goods D. Change in the distribution of incomeE. All of the above
Governments can stimulate productivity by ? A. Imposing higher taxes on capital B. encouraging more labour intensive work to reduce unemployment C. reducing spending in educationD. encouraging private investment
A combined measure of productivity that takes account of both labor and capital productivity is known as ? A. total exploitation B. labour/capital productivityC. total factor productivity D. total productivity
The belief that the rate of growth depends upon technological progress facilitated by institutions incentives and government is known as ________ growth theory? A. endogenous B. exogenous C. beta D. convergence