Multiple Choice
The complete wage and price flexibility of the real business cycle framework implies that ________.
A) the velocity of money is a constant
B) the velocity of money times the money supply is equal to the nominal value of transactions over a given period of time
C) aggregate output always equals potential output
D) sustained economic contractions,like the Great Depression,cannot occur in real,historical time
Correct Answer:
Verified
Correct Answer:
Verified
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