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

question 183

Multiple Choice

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

• A) expectations are more important than interest rates 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 rational.
• E) government is the solution to business cycles, not the problem.

---

Definitions:

Final Selling Price

The ultimate price at which a product or service is sold to the consumer, including all discounts, promotions, and negotiations.

Original Markup

The difference between the cost of a product and its initial selling price, set to achieve a desired profit margin.

Maintained Markup

The percentage difference between the selling price of a product and its cost, ensuring a certain profit margin is sustained.

Off-Price Retailing

Selling brand-name merchandise at lower than regular prices.