Multiple Choice
Which of the following theories of business cycles implies that efficient markets,characterized by perfect information and by rational business firms and households,will still be characterized by business cycles?
A) Lucas's rational expectation model
B) the natural rate hypothesis
C) the real business cycle model
D) classical theory
Correct Answer:
Verified
Correct Answer:
Verified
Q145: In Figure 17-4,below,initial demand,marginal cost,and marginal revenue
Q146: Nonunion wages should be modeled as<br>A)sticky,because they
Q147: The downfall of the fooling model is
Q148: A New Keynesian firm produces the output
Q149: While much of New Classical macroeconomics is
Q151: The new Keynesian economists argue that prices
Q152: Which of the following assumptions is found
Q153: It is reasonable to assume that in
Q154: In the RBC model,actual real GDP is<br>A)never
Q155: The "old" Keynesian approach dominated macroeconomic theory