A Business Cycle Fact That Does NOT Seem to Be

question 89

Multiple Choice

A business cycle fact that does NOT seem to be consistent with the simple RBC theory is that

• A)inflation tends to slow during or immediately after a recession.
• B)inflation tends to increase during or immediately after a recession.
• C)inflation tends to remain the same during or immediately after an expansion.
• D)inflation tends to slow during or immediately after an expansion.

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Definitions:

Microsoft Antitrust Case

A legal battle where Microsoft was accused of using its market dominance in operating systems to eliminate competition.

Active Antitrust Perspective

Refers to a proactive stance by regulatory bodies to prevent and break down monopolies and promote competition in the market.

AT&T Antitrust Case

A landmark legal case in which AT&T, once a telecommunications monopoly, was forced to divest its regional subsidiaries (“Baby Bells”) in 1984 due to antitrust violations.

Alcoa Case

A landmark antitrust case in U.S. law, where the Aluminum Company of America (Alcoa) was found to have monopolized the aluminum market, leading to significant legal and economic discussions on competition.