RBC theory leads to ________ government macro-stabilization policy, due to the theory's assumption of ________

A) a rationale for, slow wage and price adjustment
B) a rationale for, continuous market-clearing
C) a rejection of, slow wage and price adjustment
D) a rejection of, continuous market-clearing


D

Economics

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A decrease in government transfer payments

A) increases aggregate demand. B) increases the aggregate quantity demanded. C) decreases the aggregate quantity demanded. D) decreases aggregate demand.

Economics

Negative correlation between x and y implies that

A) when x is high, y is high. B) when x is high, y is low. C) xy < 0. D) x/y < 0.

Economics

The slope of the consumption function is equal to the marginal propensity to save.

Answer the following statement true (T) or false (F)

Economics

The following is likely to occur after a ________ shock: [AD? ? Y? ? T? ? deficit? ? G? ? AD? ? Y?].

A. positive aggregate demand B. positive aggregate supply C. negative aggregate demand D. negative aggregate supply

Economics