With which of the following statements would a "real business cycle" theorist most closely agree?
A) "Expansionary monetary policy allows the central bank to control inflation and unemployment simultaneously."
B) "Monetary policies have the greatest impact on real GDP when they are anticipated."
C) "Wages adjust rapidly to changes in inflation as long as expectations are formed rationally."
D) "Technological shocks to the economy affect only aggregate demand in the short run."
C
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A problem with the too-big-to-fail policy is that it ________ the incentives for ________ by big banks
A) increases; moral hazard B) decreases; moral hazard C) decreases; adverse selection D) increases; adverse selection
The tax multiplier equals 1 ? spending multiplier
a. True b. False Indicate whether the statement is true or false
The 4-year term of the president of the Fed is coterminous with the 4-year term of the president of the U.S
a. True b. False
An organization of sellers designed to coordinate their supply decisions to maximize joint profits is called a
a. consumer cooperative. b. marketing association. c. regulatory agency. d. cartel.