Many of the real business cycle theorists now acknowledge that the actual economic data indicate that their models need an upward-sloping aggregate supply curve-and that this gives __________ a potential role in determining aggregate output.
A) the natural rate hypothesis
B) the permanent income hypothesis
C) aggregate supply
D) aggregate demand

Question

Quizplus · Accepted Answer

An upward-sloping aggregate supply curve implies that changes in aggregate demand can affect aggregate output, giving aggregate demand a potential role in determining aggregate output.

Many of the Real Business Cycle Theorists Now Acknowledge That