Recall the Application which questions whether a standard real business cycle model can be used to explain both the origin and severity of the Great Depression to answer the following question(s) .
-According to the Application, to help explain the behavior of real wages during the Great Depression, economists Harold L. Cole and Lee E. Ohanian extended the standard real business cycle model to include
A) government interventions that affected the labor market.
B) extended unemployment benefits that increased real wages.
C) exports to countries that were unaffected by the Great Depression.
D) calculating GDP using real instead of nominal values.
Correct Answer:
Verified
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