Multiple Choice
The real business cycle model begins with the assumption that ________.
A) wages and prices are sticky
B) wages and prices are completely flexible
C) the velocity of money is a constant
D) nominal variables are superior to real variables in describing economic activity
Correct Answer:
Verified
Correct Answer:
Verified
Q49: Suppose a tax cut that had been
Q50: If output begins to grow substantially faster
Q51: In the new Keynesian model,a positive,permanent supply
Q52: In the new Keynesian model,the ultimate effect
Q53: Critics of real business cycle theory doubt
Q55: Critics of real business cycle analysis suggest
Q56: Which of the following demonstrates that policymakers
Q57: In the new Keynesian model,the immediate effect
Q58: According to real business cycle theory,a likely
Q59: In the real business cycle model,the short-run