Solved

According to Real Business Cycle Theory

Question 32

Multiple Choice

According to Real Business Cycle theory,


A) lack of consumer confidence causes most business cycles
B) price fluctuations are unimportant because they affect nominal, not real GDP
C) recessions are an optimal response to negative technology shocks
D) fiscal policy is the most appropriate way to smooth out economic fluctuations
E) labor supply curves are extremely steep

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q27: Which of the following plays a central

Q28: Okun's law refers to<br>A) The tendency for

Q29: A growth recession occurs when<br>A) there are

Q30: Increases in aggregate demand are likely to

Q31: The long run can be distinguished from

Q33: The Great Moderation refers to<br>A) Dramatic fall

Q34: Comparing State economies to that of the

Q35: In contrast to the long run,in the

Q36: One of the reasons why higher prices

Q37: Which of the following correctly describes a