Question

Which is not a cause for business cycles considered by macroeconomists? A. Variations in optimism B....

Which is not a cause for business cycles considered by macroeconomists?
A. Variations in optimism
B. Shocks to money supply
C. Shocks to technological ability
D. Greed

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Greed
The causes of business cycle can be classified as demand side and supply side. The supply side factors are technical shocks, change in productivity, change in population and inventory cycles. Monetary policy or interest rate change, wealth effect, confidence of the businessman and consumers, credit cycles, changes in real wage rate, multiplier and accelerator effects and exchange rate movements are the major demand side effects. Changes in house prices, lending or finance cycle, inventory cycle, real business cycle theories are the other factors which affect the business cycle.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
1. Which of the following is an assumption of real business cycle theory? A prices or...
1. Which of the following is an assumption of real business cycle theory? A prices or wages are sticky (inflexible); B money’s velocity is stable and predictable C technology (supply-side) shocks are the primary cause of business cycles D business cycles are caused by a mismatch in timing between savings, investment, and consumption 2. Which of the following is an assumption of New Keynesian theory? A prices or wages are sticky (inflexible) B money’s velocity is stable and predictable C...
1. Which of the following is (or at least was) an assumption of monetarist theory? A...
1. Which of the following is (or at least was) an assumption of monetarist theory? A prices or wages are sticky (inflexible); B money’s velocity is stable and predictable C technology (supply-side) shocks are the primary cause of business cycles D business cycles are caused by a mismatch in timing between savings, investment, and consumption 2. Which of the following is a component of Austrian Business Cycle theory? A prices or wages are sticky (inflexible); B money’s velocity is stable...
Which of the following would cause the price level to rise and output to fall in...
Which of the following would cause the price level to rise and output to fall in the short run? a. an increase in the money supply b. a decrease in the money supply c. an adverse supply shock d. a favourable supply shock 19. Which of the following best defines the political business cycle? a. the fact that about every four years some politician advocates greater government control of the Bank of Canada b. the potential for a central bank...
Which of the following is a cause of disinflation? A business cycle expansion. A recession. An...
Which of the following is a cause of disinflation? A business cycle expansion. A recession. An increase in the growth rate of the money supply. All of these answers. What is unique about an annuity loan repayment structure? "The borrower can draw down credit, repay and re-draw" Interest is paid only on money actually withdrawn Each installment is the same amount The money is paid back in regular installments
Fluctuations in real GDP are called ________? Select one: a. Depressions b. Inflation c. business cycles...
Fluctuations in real GDP are called ________? Select one: a. Depressions b. Inflation c. business cycles d. Recessions
(17) Differences in phenotype are called variations. Which of the following types of variations occur? (A)...
(17) Differences in phenotype are called variations. Which of the following types of variations occur? (A) harmful (B) neutral (C) helpful (D) all of the above
The IS curve represents a.    All the combinations of interest and income which cause the money...
The IS curve represents a.    All the combinations of interest and income which cause the money market to be in equilibrium b.    All the combinations of interest and income which cause the goods market to be in equilibrium c.    All the combinations of inflation and unemployment which cause the goods market to be in equilibrium d.    All the combinations of inflation and unemployment which cause the money market to be in equilibrium A short-run aggregate supply curve shows fixed ___________,...
Next year, in response to a truly massive boom in business optimism, the Japanese Central Bank...
Next year, in response to a truly massive boom in business optimism, the Japanese Central Bank is concerned about the economy. (14pts) What kind of shock is Japan facing? _________________________________(positive or negative and supply or demand)? If the Central Bank instead chooses to act, they can ___________________ (increase/decrease) interest rates, which ___________________ (raises/lowers) the price of bonds. If they do so, the money supply curve___________________ (moves left/moves right/is unchanged) while the money demand curve ______________________ (moves left/moves right/is unchanged). As...
Which of the following items is not considered when computing qualified business income (QBI) for the...
Which of the following items is not considered when computing qualified business income (QBI) for the QBI deduction? a. Wages paid to employees b. Ordinary business income or loss c. Rental income or loss d. Section 179 deduction
Which of the following is NOT considered part of M2? a. currency b. checkable deposits c....
Which of the following is NOT considered part of M2? a. currency b. checkable deposits c. money d. traveler’s checks e. credit cards
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT