Gordon presents several modern business cycle theories.He clearly states after all have been explained that he believes the most plausible of them to be the ________ model.
A)Lucas information-barrier
B)Friedman fooling
C)New Keynesian
D)real business cycle

Question

Quizplus · Accepted Answer

In the article, Gordon states that while the Lucas information-barrier model and the Friedman fooling model have some shortcomings, the New Keynesian model and the real business cycle model both have some strengths. However, he ultimately concludes that "the New Keynesian model is the most plausible of the models and the most useful for analyzing the business cycle of recent decades."

Gordon Presents Several Modern Business Cycle Theories