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Teacher professional development and classroom resources across the curriculum
To show how successive schools of economic thought struggled unsuccessfully to give a satisfactory explanation of business cycles until John Maynard Keynes showed that shifts in aggregate demand were the primary cause of these fluctuations.
Economist Barnard J. notes that high inflation is boosting interest rates. Increasingly, consumers seem to be purchasing imported goods rather than American-made goods. Which phase of the business cycle is Barnard MOST LIKELY to be observing?
Economics student Sylvia B. was recently overheard making the comment, “Well, if you’ve seen one business cycle, you’ve pretty much seen them all.” Which of the following is the MOST ACCURATE appraisal of Sylvia’s observation?
It is totally unsubstantiated, since business cycles are all highly individualistic.NEXT QUESTION
Most economists today—even those who totally disagree with Marxist philosophy — hold a certain respect for Marx’s economic perspectives. This is MOST LIKELY because:
Marx was the first to conceptualize a business cycle in which good times eventually produced bad, and vice versa.NEXT QUESTION
Which of these BEST summarizes the economic costs to society for tolerating a given level of unemployment? It is the difference between:
real GNP and the potential GNP.NEXT QUESTION
If the aggregate supply curve is S1, full employment of the economy’s resources will occur when:
total real output is $2,000 billion.NEXT QUESTION
If the aggregate supply curve shifts to S2:
the demand for money will decrease and interest rates will fall..RESTART QUIZ