With Which of the Following Statements Would a "Real Business

Multiple Choice

With which of the following statements would a "real business cycle" theorist most closely agree?

A) "Monetary policies have greatest impact on real GDP when they are anticipated."
B) "Expansionary monetary policy allows the central bank to control inflation and unemployment simultaneously."
C) "Wages adjust slowly to changes in inflation as long as expectations are formed rationally."
D) "Technological shocks to the economy explain deviations of real GDP from its potential level."