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 external to the economy.
C) supply shocks are more important than demand shocks for explaining business cycles.
D) business expectations are quickly changeable.
E) government is part of the problem of business cycles.
Correct Answer:

Verified
Correct Answer:
Verified
Q38: Which is not a positive demand shock?<br>A)
Q39: "Stable prices" means the average price level
Q40: In long-run macroeconomic equilibrium<br>A) the price level
Q41: According to the law of aggregate demand,
Q42: Government can affect aggregate quantity supplied with
Q44: When the price level falls, aggregate quantity
Q45: Business investment based on borrowed funds helps
Q46: The short run is a period of
Q47: Canadian aggregate demand increases immediately when<br>A) Honda
Q48: In the loanable funds market,<br>A) when interest