The Key Ripple Effect in Real Business Cycle Theory Is

question 21

Multiple Choice

The key ripple effect in real business cycle theory is the_________ decision and it depends on the_________

• A) what-to-save; nominal interest rate
• B) where-to-work; real wage rate
• C) when-to-invest; real interest rate
• D) when-to-work; real interest rate

Identify factors that influence the Pareto efficient size of a public good.

Apply principles of microeconomics to solve problems involving the allocation of resources among individuals.

Understand the impact of individual preferences on collective decisions.

Explain the relationship between private consumption expenditures and the provision of public goods.