The Key Defect of the Real Business Cycle Model and the Coordination

Multiple Choice

The key defect of the real business cycle model and the coordination failure model, in explaining what was going on in the 2008-2009 recession, is

A) the failure to recognize important features of the economy.
B) the fact that financial factors are too important in these models.
C) the absence of a role for government spending.
D) too much attention to international trade.
E) no effect of central bank actions on the price level in these models.