Multiple Choice
Real business cycle theory was introduced by
A) Thomas Cooley and Gary Hansen.
B) Finn Kydland and Edward Prescott.
C) Robert Lucas.
D) Milton Friedman and Anna Schwartz.
E) Milton Friedman and Robert Lucas.
Correct Answer:
Verified
Correct Answer:
Verified
Q7: In analyzing the fit of the New
Q8: The output gap is the difference between<br>A)output
Q9: Keynesian sticky price models are typically called<br>A)menu
Q10: Different business cycle models<br>A)support monetary policy but
Q11: Stabilization policy refers to using government policy<br>A)to
Q13: In the New Keynesian model, an increase
Q14: Crowding out of private expenditure occurs when<br>A)increases
Q15: If there is a liquidity trap in
Q16: The New Keynesian model and the monetary
Q17: The real business cycle model best explains