According to Real Business Cycle Theorists

question 41

Multiple Choice

According to real business cycle theorists:

• A) changes in output primarily represent changes in the natural level of output.
• B) fiscal policy explains most changes in wage rigidity.
• C) fiscal policy explain most changes in output.
• D) price and wage rigidity explains most changes in output.
• E) efficiency wage theory explains wage rigidity.

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Definitions:

Quota

A government-imposed trade restriction that limits the number or monetary value of goods that can be imported or exported during a particular time frame.

Supply Price

The minimum price at which a producer is willing to sell a good or service, influenced by production costs and market conditions.

Demand Curve

A graph showing the relationship between the price of a good and the quantity of the good that consumers are willing and able to purchase at each price level.

Quota

A government-imposed trade restriction limiting the number or value of goods that can be imported or exported during a specific time.