The real business cycle model focuses on how
A) wage and price stickiness explains fluctuations in real GDP.
B) the labor theory of value is the best measure of value of a good or service.
C) the Federal Reserve should adopt a monetary growth rule.
D) productivity shocks explain fluctuations in real GDP.
Answer: D
You might also like to view...
Explain the impact of capital deepening on workers
What will be an ideal response?
Almost all economists agree that local and state governments should
a. eliminate subsidies to professional sports franchises. b. increase subsidies to professional sports franchises. c. copy economic policy from Washington, D.C. d. prevent companies from outsourcing work.
Daily Output of Russia and Panama?RussiaPanamaGloves 40240Hats120180
Refer to Table 18.1. Russia has a comparative advantage in:
A. hats. B. gloves. C. both hats and gloves. D. neither hats nor gloves.
You are given information on the consumer price index (CPI), where the values given are those for December 31 of each year.
In which year was the inflation rate the highest?
A. 2006 B. 2009 C. 2007 D. 2008