The complete wage and price flexibility of the real business cycle framework implies that ________

A) the velocity of money is a constant
B) the velocity of money times the money supply is equal to the nominal value of transactions over a given period of time
C) aggregate output always equals potential output
D) sustained economic contractions, like the Great Depression, cannot occur in real, historical time

C

Economics

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Refer to the scenario above. If each bidder uses his dominant strategy, who will win the auction?

A) John B) Jacob C) Alex D) Maria

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The FE line shows the level of output at which the ________ market is in equilibrium

A) Goods B) Asset C) Labor D) Money

Economics