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 the 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 rapidly to changes in inflation as long as expectations are formed rationally."
D) "Technological shocks to the economy affect only aggregate demand in the short run."