The neoclassical theory of growth identifier the steady state rate of growth as the ____ just sufficient to keep _____ constant while labor grows?
A. saving, investment
B. capital per person, productivity
C. labor growth, output
D. investment capital per person
Real business cycle theories suggest that _____ to correct departures from the desired growth path?
A. There is a role for fiscal policy
B. There is a role for monetary policy
C. There is a role for supply-side policy
D. There is a role for stabilizing output ever the business cycle
The impossibility of negative gross investment provides a ______ to fluctuation in ______?
A. ceiling, stock building
B. ceiling, capital prices
C. floor, output
D. floor, the capital-output ratio
The multiplier accelerator model assumes ____ depends on ______?
A. consumption expected future profits
B. investment, interest rates
C. investment expected future profits
D. stock building interest rates
All of the following are parts of the business cycle except ?
A. boom
B. slump
C. recovery
D. acceleration
The business cycle describes fluctuations in output around the?
A. trend path of output
B. boom
C. recession
D. short-run fluctuations in output