Real-Business-Cycle Theory Suggests That Changes in

Multiple Choice

Real-business-cycle theory suggests that changes in

A) monetary policy are the single most important cause of macroeconomic instability.
B) investment spending will have a direct and significant effect on aggregate demand.
C) technology and resources affect productivity, and thus the long-run growth of aggregate supply.
D) the velocity of money is gradual and predictable, and thus is able to accommodate the long-run changes in nominal GDP.