Which of the following statements is (are) correct? According to real business cycle theory,
a. the desirable monetary policy would appear to be one that results in a slow steady growth in the money supply and, thus, stable prices.
b. there is some role for activist monetary stabilization policy of a Keynesian type.
c. changes in aggregate demand cannot impact output.
d. Both a and b
e. Both a and c
E
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Refer to Table 9-4. Assume the market basket for the consumer price index has two products — meat and potatoes — with the following values in 2011 and 2016 for price and quantity: The Consumer Price Index for 2016 equals
A) 125. B) 129. C) 135. D) 141.
Long-run market supply curves are downward sloping if
A) firms are identical. B) the number of firms is restricted in the long run. C) input prices fall as the industry expands. D) All of the above.