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Critics of Real Business Cycle Theory Point Out Each of the Following

Question 25

Multiple Choice

Critics of real business cycle theory point out each of the following as problems except


A) in the economy as a whole, total work hours decrease because some people become unemployed, not because most individuals work less hours.
B) in the economy as a whole, total work hours decrease because most individuals work less hours, not because some people become unemployed.
C) the unemployment rate fluctuates substantially over the business cycle.
D) high unemployment in a recession is not a market-clearing phenomenon.

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