43. Which of the following variables does NOT cause business cycles, according to classical economics? (A) Technological growth. (B) Immigration. (C) Capital accumulation. (D) Money supply.

ECON MACRO
5th Edition
ISBN:9781337000529
Author:William A. McEachern
Publisher:William A. McEachern
Chapter5: Introduction To Macroeconomics
Section: Chapter Questions
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43. Which of the following variables does NOT cause business cycles, according to
classical economics?
(A) Technological growth.
(B) Immigration.
(C) Capital accumulation.
(D) Money supply.
44. Suppose that there is a sudden fall in consumption. What happens to the economy
in the long-run?
(A) A fall in output and a fall in prices.
(B) A rise in prices.
(C) A rise in output.
(D) A fall in prices but not in output.
Transcribed Image Text:43. Which of the following variables does NOT cause business cycles, according to classical economics? (A) Technological growth. (B) Immigration. (C) Capital accumulation. (D) Money supply. 44. Suppose that there is a sudden fall in consumption. What happens to the economy in the long-run? (A) A fall in output and a fall in prices. (B) A rise in prices. (C) A rise in output. (D) A fall in prices but not in output.
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