Answer : Option C is correct. According to mainstream theory of business cycle, a decrease in aggregate demand is the most common source of recession in an economy.It means that an economy has been suffer a recession when aggregate demand has been start decreasing.The most likely component of an economic recession is that investment flucation in an economy.
Answer: Option D is correct. The aggregate demand multiplier amplifier the flucations. It means that aggregate demand has been increased in the size of fixations.
Read Eye on the Business Cycle. What, according to the mainstream theory of the business cycle,...
Model Source of Business Cycle Fluctuations (i.e., recession) Major Tenets New Keynesian View (Mainstream Model) Classical View (Real Business Cycle Model) Monetarists Austrian School
According to real business cycle theory, which of the following events is least likely to cause a recession ? A. a decline in the money supply B. a decline in in capital labour C. A decline in productivity D.A decline in labour supply Detailed answer please
According to the real business cycle theory 0 A. investment spending by business is the only factor that affects changes in real GDP or unemployment O B. only demand-side factors matter in influencing unemployment. ° C. unemployment is fixed at the natural rate and cannot be affected by anything the government does. O D. only supply-side factors matter in influencing unemployment.
What is the primary driver of business cycles according to monetary theory? Supply of money Credit cards Aggregate decisions over saving and spending Fluctuations in the supply of money in the economy
What is the primary driver of business cycles according to monetary theory? a. credit cards b. fluctuations in the supply of money in the economy c. aggregate decisions over saving and spending d. supply of money
According to which theory of the business cycle do changes in the quantity of money never play a role in helping to explain fluctuations in real variables? Select one a. monetarist bnew Keynesian c. Keynesian d real business de During a recession, spending on tends to fail mare dramaticaly than spendingon Select one a necessities, xuries b. nondurable goods durable goods cfood cars d. durable goods, nonduble goods ch Using the monetarist model, place the following events in the order...
Q 28, 29, 31 According to the real business cycle theory, technological change A. can initially decrease productivity. B. is caused by changes in productivity. C. never increases productivity. D. always increases productivity. --------------------------------------------- Suppose the country of Mooland imposes tariffs on imported beef from the country of Aqualand. As a result of the tariffs, the A. quantity of beef imported by Mooland decreases. B. quantity of beef exported by Mooland increases. C. price of beef in Mooland falls. D....
Please use the following to answer the questions a. Mainstream View b. Monetarist View c. Real Business Cycle Theory d. self-correction view 33. The significant increase in oil prices during the late 1970s and early 1980s created a reduction in labor productivity that had long-term effects on economic output and the price level, which lasted until the emergence of information and communication technology in the 1990s. 34. In 2000, the Federal Reserve raised interest rates several times. These actions are...
According to Keynesian theory, the most important determinant of saving and consumption is Select one: a. the level of real income. b. the stock of liquid assets. c. the stock of durable goods in the consumer's possession. d. the level of consumer indebtedness. Question 5 Not yet answered Marked out of 1.00 Flag question Question text In the Keynesian model, planned investment is inversely related to Select one: a. the interest rate. b. the level of income. c. the wage...
x A2 Avv Styles U prou Or Yusra SLIVICES mar given pero rore 17. Business cycles a. are explained mostly by fluctuations in consumption. b. no longer are very important due to government policy. c. are fluctuations in real GDP and related variables over time. d. are easily predicted by competent economiſts. e. is like cobwebs 18. Most economists use the aggregate demand and aggregate supply model primarily to analyze a. short-run fluctuations in the economy. b. the effects of...