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Whether You Think That Real Business Cycle Theory Is Promising

Question 17

Multiple Choice

Whether you think that real business cycle theory is promising depends on answers to each of the following questions except


A) should the fact that a reduction in work hours shows up as some people becoming wholly unemployed change one's interpretation of what causes a decline in total hours worked?
B) should the fact that many wages and prices are not flexible lead one to assign a prominent role to monetary factors as causes of real fluctuations in output and employment?
C) how large are "technology" shocks to the economy?
D) how large are "demand" shocks to the economy?

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