In the basic real business cycle model, where prices are fully flexible, shocks to the dynamic aggregate demand always lead to: I. changes in real GDP. II. changes in inflation. III. changes in spending growth. A) I only B) I and III only C) II only D) I, II, and III E) II and III only F) None of the above
In the basic real business cycle model, where prices are fully flexible, shocks to the dynamic aggregate demand always lead to: I. changes in real GDP. II. changes in inflation. III. changes in spending growth. A) I only B) I and III only C) II only D) I, II, and III E) II and III only F) None of the above
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter16: Expectations Theory And The Economy
Section: Chapter Questions
Problem 14QP
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In the basic real business cycle model, where prices are fully flexible, shocks to the dynamic aggregate
I. changes in real GDP.
II. changes in inflation.
III. changes in spending growth.
A) I only
B) I and III only
C) II only
D) I, II, and III
E) II and III only
F) None of the above
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