In the real-business-cycle theory,
A) declines in real output cause declines in the money supply and thus aggregate demand.
B) decreases in long-run aggregate supply are fully anticipated and therefore do not reduce real output.
C) technology is constant.
D) economic instability results from inappropriate monetary policy.

Question

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The Answer of In the real-business-cycle theory,
A) declines in real output cause declines in the money supply and thus aggregate demand.
B) decreases in long-run aggregate supply are fully anticipated and therefore do not reduce real output.
C) technology is constant.
D) economic instability results from inappropriate monetary policy.

In the Real-Business-Cycle Theory