An equilibrium business-cycle model:
A) uses shocks to GDP to find equilibrium conditions.
B) uses GDP to find equilibrium shocks to the economy.
C) uses equilibrium conditions to determine how shocks affect real GDP and other macroeconomic variables.
D) uses GDP to find equilibrium conditions.
Correct Answer:
Verified
Q1: An increase in the interest rate makes
Q3: The model predicts that in response to
Q4: If there is a permanent increase in
Q5: During an economic expansion due to an
Q6: When the marginal product of labour increases
Q7: During an economic expansion due to an
Q8: The model predicts that if there is
Q9: An increase in the level of technology,
Q10: If technology, A, increases, then:
A)the MPK and
Q11: The model predicts that if there is
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