How Do RBC Economists Face the Business Cycle Fact That

Multiple Choice

How do RBC economists face the business cycle fact that inflation is procyclical?

A) They argue that even though inflation doesn't fit their theory, everything else does, and inflation is not important.
B) They note that inflation would not be procyclical if monetary policy were conducted properly.
C) They argue that inflation is procyclical only because monetary policy shocks are the main cause of business cycles.
D) They use alternative statistical methods that suggest that inflation is countercyclical.