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?
Correct Answer:
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Q12: The Milton Friedman - Edmund Phelps analysis
Q13: The rational expectations macroeconomists
A) argued that Keynesian
Q14: Economists working in both Keynesian and monetarist
Q15: Real business cycle theorists believe that the
Q16: Real business cycle theorists strongly believe in
Q18: According to real business cycle theorists, the
Q19: According to real business cycle theorists, hours
Q20: According to real business cycle theorists, hours
Q21: According to real business cycle theorists, each
Q22: According to real business cycle theorists, each
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