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Real Business Cycle Theory Explains Variations in Prices,employment and Output

Question 4

Multiple Choice

Real business cycle theory explains variations in prices,employment and output by focusing on


A) changes in real variables such as demand and supply shocks,technological changes,and shifts in the composition of the labour force.
B) anticipated monetary policies enacted by the Bank of Canada.
C) the effects of the Phillips curve.
D) anticipated changes fiscal policy enacted by the government.

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