Multiple Choice
The propagation mechanism
A) explains why shocks to the economy have long-lasting effects
B) says that changes in money supply affect individual markets but have only limited effects on the economy since markets clear rapidly
C) supports the notion that anticipated money supply changes have no real effect on output
D) says that unemployment is a result of firms paying workers higher than market-clearing wages to get them to work harder
E) none of the above
Correct Answer:
Verified
Correct Answer:
Verified
Q2: The random walk of GDP model assumes
Q3: Dynamic stochastic general equilibrium (DSGE) models<br>A)are based
Q4: The rational expectations approach<br>A) insists that all available
Q5: The real business cycle theory states that<br>A)changes
Q6: The rational expectations equilibrium approach emphasizes<br>A)the microeconomic
Q7: Critics of the so-called DSGE models point
Q8: The rational expectations approach assumes that<br>A)people never
Q9: If we compare the classical model with
Q10: The real business cycle theory asserts that
Q11: The rational expectations equilibrium approach to macroeconomics<br>A)stresses