Multiple Choice
Which of the following is NOT one of the criticisms of real business cycle theory?
A) Inter- temporal substitution is too weak.
B) The theory is built on weak microeconomic foundations.
C) The money wage rate is sticky in the short run.
D) Productivity fluctuations are the result of the business cycle, not the cause of business cycles.
Correct Answer:
Verified
Correct Answer:
Verified
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