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.

45. Suppose that there is a temporary fall in aggregate supply due to a drought. What happens in the long-run?

(A) Higher prices cause permanent tensions, leading long-run aggregate supply to shift left, resulting in a lower natural rate of output.

(B) Over time, as the drought conditions fade, aggregate supply rises and returns to the original natural rate of output.

(C) Aggregate demand shifts right, so that prices are higher but long-run output is unchanged.

(D) If the person you're dating enjoys Taylor Swift, dump them immediately.

46. Which of the following institutions controls the central banks of various nations?

(A) Financial Stability Board. (B) International Bank for Reconstruction and Development. (C) Bank of International Settlements. (D) The World Bank.