Multiple Choice
Which of the following is true of the real business cycle approach to stabilization policy?
A) It is necessary, but it should not be overused.
B) It is necessary during recessions but not during booms.
C) It is unnecessary because output fluctuations reflect productivity disturbances.
D) It is unnecessary because output fluctuations are largely the result of policy mistakes by the Fed.
Correct Answer:
Verified
Correct Answer:
Verified
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