According to real business cycle models,
A) the economy is normally at potential GDP.
B) unexpected changes in monetary policy are the major source of fluctuations in real GDP.
C) the long-run Phillips curve is negatively sloped.
D) the economy is normally operating below the natural rate of unemployment.
A
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When a German company purchases a U.S. company for $20 million, in the balance of payments the value of that transaction is recorded in the
A) current account. B) investment account. C) official purchases account. D) capital and financial account. E) purchase account.
The term capital in economic theory refers to
A) any privately owned resource. B) bonds, stocks, and similar financial assets. C) money available for lending or spending. D) produced goods used to produce future goods. E) savings out of income.