Multiple Choice
The real business cycle theory
A) indicates that supply side shocks cause most business cycles.
B) indicates that demand side shocks cause most business cycles.
C) indicates that rapid changes in the money supply cause most business cycles.
D) indicates that faulty fiscal policy creates most business cycles.
Correct Answer:

Verified
Correct Answer:
Verified
Q96: During the 1970s, the shocks to the
Q111: Those who accept both the rational expectations
Q163: Suppose that the economy is in long-run
Q255: The Phillips Curve will shift when<br>A) the
Q260: When workers and employers correctly anticipate the
Q261: What happens to the Phillips curve when
Q262: We observe the duration of unemployment falling
Q264: The hypothesis stating that people combine the
Q265: The natural rate of unemployment consists of<br>A)no
Q269: According to Friedman and Phelps, which of