Real-Business-Cycle Theory Suggests That Changes In

Multiple Choice

Real-business-cycle theory suggests that changes in:

A) Monetary policy is the single most important cause of macroeconomic instability
B) Investment spending will have a direct and significant effect on aggregate demand
C) Technology and resources affect productivity, and thus the long-run growth of aggregate supply
D) The velocity of money is gradual and predictable, and thus is able to accommodate the long-run changes in nominal GDP