In real business cycle theory, which of the following is the driving force of macroeconomic instability? Multiple Choice O O uncertainty about risky investment returns technology changes and innovation

Author claims, “The pandemic was unexpected shock. Climate change and climate policy are known shocks that can even more substantial impact on economic structures and macroeconomic stability.”Critically explain this statement by using AD-AS model.

In the basic New Keynesian model, suppose that there is an increase in the future marginal product of capital. Assume that the central bank has a quadratic loss function. a. If the central bank does nothing, then current inflation will and current output will decrease. increase. not change.

QUESTION 21 A E В Time In the accompanying diagram, which phase of the business cycle would be most closely associated with an economic contraction? O a.B Ob.A O.D Od.C Level of Business Activity

The "No - Markets Fail Often" camp Select one: a. believes business cycles happen regularly. b. focuses on the short-run. c. rejects Say's Law. d. believes the economy's self-adjusting mechanisms are slow. e. does all of the above.

An example of an investment boom that increased AD and LRAS is   a. the 1970s oil price shock b. the 1980-82 recession c. the 1990s information technology boom d. the financial crisis that caused the Great Recession

Question 1 The economy Is at full emplayment when A there are more unemployedbtworkers than vacancCIe Ball unemployment Is cyClical C there are no unemplayment wUorkers Dallemploymentis frietional and lor structabral Question 2 Structioral Unemployment Isassociated with A short -term unemployment B general down turns in the economY C the changing of jobs ina dynamic economy D the changes intechnology that change required Question 3 Real GDP Is adjusted for inflation ATrue B False Queston 4 Including discouraged workers in the calculation unemployment rate would JA increase the reported rate B lower the reported rate not change the reported rate D chunge the reported rate butin an unpredictat

Consider the neo-classical approach to macroeconomics.  Given there is a recessionary period, that theory suggests that, given some time ... Group of answer choices a. The AD line will shift right b. The AS line will shift left c. The AD line will shift left d. The AS line will shift right

With reference to the business cycle, explain how economic recovery (and the resulting "boom") will eventually lead ro recession and "bust".

What is the contractionary phase of the business cycle characterized by? O reduced output and increased unemployment increased output and increased unemployment reduced output and reduced unemployment increased output and reduced unemployment