With which of the following statements would a "real business cycle" theorist most closely agree?
A) "Monetary policies have greatest impact on real GDP when they are anticipated."
B) "Expansionary monetary policy allows the central bank to control inflation and unemployment simultaneously."
C) "Wages adjust slowly to changes in inflation as long as expectations are formed rationally."
D) "Technological shocks to the economy explain deviations of real GDP from its potential level."
E) "Firms are typically less accurate than workers when it comes to predicting inflation."
Correct Answer:
Verified
Q187: Figure 13.10 Q189: If rational workers and firms know that Q190: Figure 13.7 Q191: When individuals use _ about an economic Q191: The "rational expectations" school of economists,including Robert Q192: During the 1960s,in face of moderate and Q193: If wages and prices adjust rapidly, we Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents![]()
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