Recall Application 3, "Can Labor Market Policies Account for the Great

Recall Application 3, "Can Labor Market Policies Account for the Great Depression," to answer the following questions:
-According to the application, what was observed during the Great Depression that contradicts the basic real business cycles?

A) Gold prices decreased during the great depression, but the basic real business cycle models predicted it to increase.
B) Real wages decreased during the Great Depression, but the basic real business cycle models predicted it to increase.
C) Unemployment rates decreased during the great depression, but the basic real business cycle models predicted it to increase.
D) Real wages increased during the Great Depression, but the basic real business cycle models predicted it to decline.