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Distinguishing Between the Real Business Cycle Model and the Coordination

Question 40

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.

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