Multiple Choice
The "No - Markets Fail Often" camp argues that
A) interest rates are more important than expectations for business investment decisions.
B) most shocks are internal 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.
Correct Answer:

Verified
Correct Answer:
Verified
Q250: Long-run aggregate supply represents the macroeconomic performance
Q251: Which macroeconomic performance targets are not represented
Q252: The interest rate is the price of
Q253: Supply plans to increase the quality of
Q254: The long run is a period of
Q256: Falling average prices and higher unemployment most
Q257: The best measure of "growth in living
Q258: What can directly change aggregate demand and
Q259: In the loanable funds market, businesses do
Q260: In explaining business cycles, the "Yes -