Multiple Choice
Real business cycle theorists take the comovement of aggregate output and Solow residuals as strong confirmation that economic fluctuations are caused by ________.
A) changes in aggregate demand
B) changes in the money supply
C) changes in the rate of inflation
D) productivity shocks
Correct Answer:

Verified
Correct Answer:
Verified
Q65: Long-run aggregate supply shocks are a source
Q66: According to real business cycle theory,an increase
Q67: In the new Keynesian model,an _ increase
Q68: In the real business cycle model,unemployment is
Q69: A belief that demand shocks are an
Q71: Credibility is important to successful anti-inflationary policy
Q72: The real business cycle model suggests that,with
Q73: The complete wage and price flexibility of
Q74: In the new Keynesian model,the ultimate effect
Q75: In the new Keynesian model,the effects on