Asked Feb 1, 2020

According to the Austrian theory of the business cycle, the following is false

A. A cluster of sudden errors by previously successful entrepreneurs is revealed by the recession

B. Overall prices always fall during a recession

C. An inflationary boom is inevitably followed by a recession

D. The prices of consumer goods rise relative to the prices of capital goods during the recession


Expert Answer

Step 1

Economics homework question answer, step 1, image 1

Step 2

Economics homework question answer, step 2, image 1

Step 3

Economics homework question answer, step 3, image 1


Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in



Related Economics Q&A

Find answers to questions asked by student like you
Show more Q&A

Q: Determining the international economic/trade exposure of the Netherlands, to what extent is the Dutc...

A: The economic system of Netherland is mixed. It includes a variety of private freedom, having the com...


Q: Suppose that an increase in the supply of a good causes expectations of future price decreases to ch...

A: Change in demand refers to a shift in the demand curve due to a variety of changes in non-price fact...


Q: O If the market interest rate (i) increases today, the Price of a Bond (P) today will decline. The f...

A: The coupon bonds are the bonds in which the interest rate that the bonds pays to the holders will be...


Q: Consider two neighboring island countries called Bellissima and Felicidad. They each have 4 million ...

A: We can calculate the opportunity cost of B and F for their production of 1 bushel of corn using the ...


Q: BYOB is a monopolist in beer production and distribution in the imaginary economy of Hopsville. Supp...

A: (1)  Marginal revenue (MR) is equal to marginal cost (MC) is the monopolist’s profit maximizing poin...


Q: The following graph shows the market for cereal in New York City, where there are over 1,000 stores ...

A: Click to see the answer


Q: If John can produce a good in less time than Fred then he has an absolute advantage in producing tha...

A: Absolute advantage: A person is said to have an absolute advantage if he/she can produce the greater...


Q: . Why are shortages or surpluses more likely with preset prices, such as those on tickets, than flex...

A: The preset price refers to a predetermined price that is set by a business before the actual transac...


Q: What happened during hyperinflations?

A: Inflation: The term inflation indicates the increase in the general price level of commodities in an...