323. Marginal utility curve of a given consumer is also his:
Indifference curve
Total utility curve
Demand curve
Supply curve
Correct answer: (C) Demand curve
324. The real business cycle theory is most closely related to
Keynesian theory
Monetarist theory
The classical theory
The new Keynesian theory
Correct answer: (C) The classical theory
325. In the new Keynesian models,
Imperfect competition comes is the result of optimizing behavior by individuals
Perfect competition is assumed with respect to the product market
A natural monopoly is presumed for the product market
Both a and c
None of the above
Correct answer: (A) Imperfect competition comes is the result of optimizing behavior by individuals
326. New Keynesian economists/p>
Believe that the deviations of output below potential output during recessions are socially costly
Presume that much unemployment is involuntary
Attempt to improve the microeconomic foundations of the traditional Keynesian models not challenge their major premises
Both a and c
All of the above
Correct answer: (E) All of the above
327. According to the real business cycle theory business cycles
Can be eliminated with appropriate monetary and fiscal policy
Are natural and efficient reactions to changes in productivity
Do not occur
Occur infrequently
None of the above
Correct answer: (B) Are natural and efficient reactions to changes in productivity
328. If the tax function is T= t0+t1y where t1 equals 1/3, and if the marginal propensity to consume out of disposable income is 3/4, then the change in GDP oer unit change into t0 (ΔY/Δ t0) will be