Multiple Choice
Distinguishing between the real business cycle model and the coordination failure model
A) is impossible.
B) requires that we verify whether increasing-returns-to-scale production is important.
C) requires that we identify the composition of the labour force.
D) is easy.
E) has been done, and the real business cycle model has been shown to be superior.
Correct Answer:

Verified
Correct Answer:
Verified
Q35: A negative total factor productivity shock and
Q36: In the real business cycle model, a
Q37: The real business cycle model replicates the
Q38: The real business cycle model best explains
Q39: Real business cycle theory was introduced by<br>A)
Q41: In the real business model, a persistent
Q43: According to real business cycle theorists, an
Q44: In the coordination failure model, the 'good'
Q45: The observed correlation between the price level
Q83: Explain what the policy implications of the