The "No - Markets Fail Often" Camp Argues That

question 271

Multiple Choice

The "No - Markets Fail Often" camp argues that

• A) expectations are more important than interest rates for business investment decisions.
• B) most shocks are external to the economy.
• C) supply shocks are more important than demand shocks for explaining business cycles.
• D) business expectations are rational.
• E) government is part of the problem of business cycles.

---

Definitions:

Hours Worked

The total number of hours spent working by an individual or group within a specific period, such as a day or week.

Side-By-Side Bar Chart

A graphical display for depicting multiple bar charts on the same display.

Stacked Bar Chart

A graphical display of data where several bars are placed on top of one another to represent the total amount broken down into different parts.

Pie Chart

A circular statistical graphic which is divided into slices to illustrate numerical proportion.