Shocks to long-run aggregate supply can be a source of business fluctuations ________
A) only in real business cycle models
B) only in new Keynesian models
C) in both real business cycle and new Keynesian models
D) only if the money supply rises
C
You might also like to view...
In the Keynesian system a drop in investment __________ cause the interest rate to __________
A) will; fall B) will; rise C) does not; rise D) does not necessarily; fall
A decrease in taxes
a. increases GDP as much as a decrease in government purchases b. increases GDP less than an equal increase in government purchases c. decreases GDP more than an equal decrease in government purchases d. changes GDP but in an unpredictable way because some people consume more than others and others save more than some e. increases consumption but has no effect on GDP
The highest interest rates in the world are found in countries
a. that have followed a monetary policy that is highly restrictive. b. with governments that have run large budget surpluses. c. with governments that have run sizable budget deficits. d. that have followed an expansionary monetary policy that resulted in high rates of inflation.
The job of _____ is to impose a settlement.
A. an arbitrator B. a mediator C. a collective bargaining team leader