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

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

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter6: Business Cycles And Unemployment

Section: Chapter Questions

Problem 1SQ

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Concept explainers

Demand and Supply

The concept of demand and supply is important for various factors. One of them is studying and evaluating the condition of an economy within a certain period. The analysis or evaluation of the demand-side factors is important for the suppliers to understand the consumer or individual behaviour. The evaluation of supply-side factors is important for the consumer or individuals to understand that what kind of combination of an economic good or what kind of economic good and services he or she should consume to maximise his utility and minimise the cost. Therefore, in microeconomics, both of these concepts are extremely important to have an idea that what exactly is going on in the economy.

Question

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

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