Macroeconomists generally believe that year-to-year fluctuations in real GDP around its trend are best thought of as
A) variations in the economy's equilibrium rate of growth.
B) measurement error.
C) the sign of a healthy dynamic economy.
D) temporary departures from long-run equilibrium.
E) none of the above.
Correct Answer:
Verified
Q2: When modeling aggregate demand, the question of
Q3: An important distinction between the long-run and
Q4: Individual's decisions to purchase goods and services
Q5: The assumption to ignore inventory adjustment in
Q6: Of the many ways to measure GDP,
Q7: The simple, Keynesian consumption function is founded
Q8: The theories and models of macroeconomics are
Q9: Short-term departures from equilibrium may be caused
Q10: The assumption that aggregate demand determines output
Q11: Short-run adjustments to changes in the economic
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