Business-Cycle Theory Focuses on Time Horizons of Less Than

question 58

Multiple Choice

Business-cycle theory focuses on time horizons of less than

• A) five years.
• B) ten years.
• C) two years.
• D) one year.
• E) one month.

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Definitions:

Edgeworth Box

A diagram used in economics to show the distribution of resources and the allocation of goods in a two-person, two-good economy.

Contract Curve

In economics, the curve that represents the set of Pareto efficient allocations in an Edgeworth Box diagram.

Utility Function

A symbolic depiction illustrating the ranking of preferences a consumer holds across various goods or outcomes.

Edgeworth Box

A diagram used in economics to show the distribution of resources and the potential gains from trade between two individuals in a pure exchange economy.