The level of income is unchanged in response to unanticipated anti-inflation policy in ________.
A)real business cycle theory
B)traditional Keynesian theory
C)new Keynesian theory
D)post classical theory

Question

Quizplus · Accepted Answer

Real Business Cycle Theory posits that real economic variables, such as real income, are not affected by monetary disturbances, including unanticipated anti-inflation policy. This theory suggests that real economic outcomes are primarily driven by real factors such as technology and resource availability, rather than by monetary policy or inflation expectations.

The Level of Income Is Unchanged in Response to Unanticipated