The "Yes - Markets Self-Adjust" Camp Argues That

question 28

Multiple Choice

The "Yes - Markets Self-Adjust" camp argues that

• A) interest rates are more important than expectations for business investment decisions.
• B) most shocks are internal to the economy.
• C) demand shocks are more important than supply shocks for explaining business cycles.
• D) business expectations are quickly changeable.
• E) government is the solution to business cycles, not the problem.

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Definitions:

Empathize

The ability to understand and share the feelings of another person from their perspective.

Cognitive Therapy

A form of psychotherapy that identifies and helps change unhelpful patterns of thinking, leading to improved mood and behavior.

Insomnia

A sleep disorder characterized by difficulty falling asleep, staying asleep, or obtaining restorative sleep, leading to daytime impairment.

Feeling Upset

A general term for experiencing negative emotions such as sadness, anger, or frustration that might be temporary and triggered by specific events.