According to real-business-cycle theory,
A) monetary factors affecting aggregate demand cause macroeconomic instability.
B) recessions result from declines in long-run aggregate supply, rather than decreases in aggregate demand.
C) when real wages fall during recessions, "real" unemployment rates rise.
D) the net long-run costs of business fluctuations are severe.
Correct Answer:
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Q26: If the money supply is constant when
Q27: According to monetarists, the Great Depression in
Q28: When most consumers and firms reduce spending
Q29: If the nominal GDP is $477 billion
Q30: New classical economists
A)stress the importance of federal
Q31: Assume that many households and businesses reduce
Q33: The real-business-cycle theory holds that business fluctuations
Q36: Monetarists say
A)that, because P is stable, a
Q37: Monetarists believe the private economy is inherently
A)unstable
Q46: According to new classical economists, the
A) short-run
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