Multiple Choice
Which of the following is true regarding the implications of real business cycles?
A) It can dampen the impact of austerity measures taken to reduce structural deficit.
B) It renders fiscal policy totally ineffective.
C) It invalidates the negative association between inflation and aggregate demand.
D) It proves that the long-run aggregate supply curve is in fact fixed for an economy, and
Correct Answer:
Verified
Correct Answer:
Verified
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