Multiple Choice
The real business cycle theory states that
A) changes in money supply result in output fluctuations
B) labor supply is highly elastic in response to permanent changes in the real wage rate
C) the most important economic disturbances arise from supply shocks or unanticipated changes in productivity
D) firms are reluctant to change prices due to the menu costs involved
E) a change in labor productivity will not have a long-lasting effect on real output
Correct Answer:
Verified
Correct Answer:
Verified
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