The real business cycle model
A) fits the 2008-2009 Canadian data perfectly.
B) cannot account for the behaviour of the price level in the 2008-2009 recession.
C) cannot account of the behaviour of consumption in the 2008-2009 recession.
D) cannot account for the behaviour of investment in the 2008-2009 recession.
E) can account for the behaviour of the price level in the 2008-2009 recession.
Correct Answer:
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