Real business cycle theory says that ____ not important in explaining short-term fluctuations in actual output. Which phrase completes the sentence?
Correct answer D. Aggregate demand is
Subject / 2,616 questions
Economics MCQs
Page 78 of Economics multiple-choice questions with answers. Tap an option to check yourself.
Page 78 of 131
- Miscellaneous Economics 737
- Basic of Economics 430
- Markets, Efficiency And The Public Interest 167
- Agriculture & Irrigation System of Pakistan 126
- Market 87
- Macroeconomic Issues and Analysis 75
- Money, Interest Rates And Output 73
- Introduction To Economics 70
- Population And Development 62
- Profit Maximizing Under Perfect Competition And Monopoly 56
- Income Inequality 52
- Non-Tariff Trade Barriers 48
- Aggregate Supply, Unemployment And Inflation 45
- Natural Resources and the Environment Toward Sustainable Development 44
- Costs , Supply And Perfect Competition 44
- Human Capital 42
- Labour Market 39
- Monopoly 35
- Long Term Economic Growth 30
- Inflation & Productivity 30
- Regional Trading Arrangements 29
- Characteristics and Institutions of Developing Countries 24
- Oligopoly 23
- Consumer Theory vs. Real Consumers 20
- Applied Microeconomics 20
- Alternative Theories Of The Firm 20
- Public Goods 20
- Balance of Payments, Aid and Foreign Investment 19
- Prices, Wages & Taxes 19
- Comparative GDP 19
- Budget Deficits And The Trade Balance 18
- Macroeconomic Policy Tools 18
- Asymmetric Information 17
- Application of Economics 16
- Production Factors 16
- Monopoly & Competition 15
- Capital Formation, Investment Choice, Information Technology, And Technical Progress 15
- Monetary, Fiscal And Incomes Policy, And Inflation 15
- Average And Total Cost 14
- Poverty, Malnutrition, And Income Inequality 12
- Monetary Union 10
Real business cycles are fluctuations in which measure?
Correct answer B. Potential output
Through which channel is the business cycle NOT passed from one country to another?
Correct answer A. The duration of compulsory education
Advertisement
According to real business cycle theorists, what can explain both short- and long-term fluctuations in output?
Correct answer A. Intertemporal decisions of households, firms and government
What does the idea of GDP convergence in Europe suggest?
Correct answer D. Poorer, less developed countries will catch up with richer ones
According to this view, what is the best way to achieve economic growth?
Correct answer A. Save more
At what level of national income is the long-run equilibrium reached?
Correct answer B. Where all investment is used to maintain the existing capital stock at its current level
What is the name of the growth path that results from technological progress at a given saving rate?
Correct answer C. Steady state growth path
The view that growth depends on technological progress shaped by institutions, incentives and government is known as which growth theory?
Correct answer A. Endogenous
Advertisement
What is the name for a combined productivity measure that accounts for both labour and capital?
Correct answer A. Total factor productivity
How can governments boost productivity?
Correct answer A. Encouraging private investment
Why might GDP per head be an imperfect measure of economic welfare?
Correct answer E. All of the above
Neoclassical growth theory identifies the steady state as the point where ____ is just enough to keep ____ constant while the labour force grows. Which pair completes the sentence?
Correct answer D. Investment, capital per person
Around what does the business cycle describe fluctuations in output?
Correct answer C. The trend path of output
Which of these is NOT a phase of the business cycle?
Correct answer B. Acceleration
Advertisement
In the multiplier-accelerator model, ____ is assumed to depend on ____. Which pair completes the sentence?
Correct answer A. Investment, expected future profits
Because gross investment cannot be negative, it provides a ____ to fluctuations in ____. Which pair completes the sentence?
Correct answer C. Floor, output
Which statement about an economy’s resources is correct?
Correct answer D. They are limited at any moment in time
What term describes the sacrifice made when you choose a particular course of action?
Correct answer C. Opportunity cost
How are human wants usually described in economics?
Correct answer A. Unlimited