Real business cycle theorists agree with new Keynesian economists that
a. agents maximize utility.
b. the labor market do not clear.
c. AS shocks can play a big role in business cycles.
d. Both a and c.
D
Economics
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Classifying a good as rival means
A) that when one person consumes a unit of the good no one else can consume it. B) anyone who does not pay for the good cannot consume it. C) that the good is produced in a competitive market. D) that there is a shortage of the good.
Economics
Suppose that the nominal rate of interest is holding steady at 2 percent even as the anticipated rate of inflation rises. What is happening to the real rate of interest?
A) It is unchanged. B) It is increasing. C) It is decreasing. D) It equals the nominal interest rate.
Economics