According to real business cycle models
A) the economy is normally operating below the natural rate of unemployment.
B) unexpected changes in monetary policy are the major source of fluctuations in real GDP.
C) the economy is normally at potential GDP.
D) the long-run Phillips curve is negatively sloped.
C
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In the above figure, the efficient quantity is
A) 0 units. B) 70 units. C) 80 units. D) 100 units.
What asset is created by government, not sold on financial markets, not issued by financial intermediaries, and is held directly by savers?
A) checkable deposits B) currency C) government bonds D) mortgages
A production possibilities curve shows the various combinations of two outputs that:
a. an economy should produce. b. an economy can produce. c. consumers would like to consume. d. producers would like to produce.
Exhibit 2-13 Production possibilities curve
In Exhibit 2-13, point H is:
A. achievable with today's resource base. B. not achievable today because the economy has not achieved full employment. C. not achievable today because the economy is not at its maximum point of efficiency. D. not achievable today because of inadequate production capacity.