Innovations Such as the Microchip and the Internet Lead to Business

question 22

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:

Receptive Vocabularies

The set of words a person can comprehend and understand when listening or reading, as opposed to the words they can actively use.

Productive Vocabularies

The set of words a person can actively use in speech or writing, as opposed to words they can only recognize when heard or read.

Under-extension

A cognitive error typical in early child language development where a child inappropriately restricts the use of a word to only one object or situation.

Telegraphic Speech

A stage in language acquisition in children where speech is abrupt and consists mainly of content words, resembling the structure of telegraph messages.