Innovations Such as the Microchip and the Internet Lead to Business

question 115

Multiple Choice

Innovations such as the microchip and the Internet lead to business cycle variations because

• A)they cause prices to be sticky.
• B)significant innovations occur irregularly and unexpectedly.
• C)the central bank will often change the money supply in response.
• D)they cause prices to be flexible.

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Definitions:

Side Effects

Unintended consequences of an action or decision that can be either beneficial or harmful.

Settlement Cost

The expenses incurred in the resolution of a dispute, transaction, or litigation, including legal fees, negotiation costs, and any payments made to settle the case.

Threat

a potential cause of harm or adverse effect on someone or something.

Raise Request

A formal or informal petition for an increase in salary or wages.