RBC theory leads to ________ government macro-stabilization policy,due to the theory's assumption of ________.
A)a rationale for,slow wage and price adjustment
B)a rationale for,continuous market-clearing
C)a rejection of,slow wage and price adjustment
D)a rejection of,continuous market-clearing

Question

Quizplus · Accepted Answer

RBC (Real Business Cycle) theory leads to a rejection of government macro-stabilization policy due to its assumption of continuous market-clearing, where markets are always in equilibrium and prices adjust quickly to changes.

RBC Theory Leads to ________ Government Macro-Stabilization Policy,due to the Theory's