The model of short-run economic fluctuations focuses on the price level and
A)real GDP.
B)economic growth.
C)the neutrality of money.
D)None of the above is correct.

Question

Quizplus · Accepted Answer

The model of short-run economic fluctuations, also known as the business cycle model, is concerned with changes in real GDP and the price level in the short run. It seeks to analyze the causes of fluctuations in output and prices, including changes in aggregate demand and aggregate supply. Therefore, option A is the correct choice. Options B and C are not applicable in the context of the short-run business cycle model.

The Model of Short-Run Economic Fluctuations Focuses on the Price