Multiple Choice
A theory of aggregate economic fluctuations called real business cycle theory holds that
A) changes in the real money supply are the only demand shocks that affect the natural rate of output.
B) aggregate demand shocks do affect the natural rate of output.
C) aggregate supply shocks do affect the natural rate of output.
D) changes in net exports are the only demand shocks that affect the natural rate of output.
Correct Answer:
Verified
Correct Answer:
Verified
Q1: An autonomous monetary policy easing reduces real
Q3: The aggregate demand curve is the total
Q4: Everything else held constant,an increase in government
Q5: The long-run aggregate supply curve is<br>A)a vertical
Q6: Suppose the U.S. economy is producing at
Q7: A permanent negative supply shock leads to
Q8: Everything else held constant,aggregate demand increases when<br>A)taxes
Q9: Which of the following increases aggregate supply
Q10: Suppose the economy is producing at the
Q11: According to aggregate demand and supply analysis,the