Multiple Choice
The real business cycle theory
A) indicates that supply side shocks cause most business cycles.
B) indicates that demand side shocks cause most business cycles.
C) indicates that unanticipated changes in the money supply cause most business cycles.
D) indicates that frequent fiscal policy actions cause most business cycles.
Correct Answer:

Verified
Correct Answer:
Verified
Q58: Examination of data since 1953 indicates that
Q59: Monetary and fiscal policymaking that is carried
Q60: From 1950 until the late 1980s, the
Q61: Under the assumption of rational expectations, fiscal
Q62: According to the rational expectations hypothesis, the
Q64: According to sticky-price theories,<br>A) only fiscal policy
Q65: If the average interval between firms' price
Q66: During a recession, the<br>A) natural rate of
Q67: When the actual unemployment rate is greater
Q68: If a significant portion of firms in