Real Business Cycle Analysis Differs from Both the New Classical

question 41

Multiple Choice

Real business cycle analysis differs from both the new classical and the new Keynesian analyses in holding that

• A)the aggregate supply curve is vertical even in the short run.
• B)changes in aggregate demand can affect output in the long run.
• C)money is neutral in the long run, but not in the short run.
• D)prices are sticky in the short run.

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Definitions:

Psoriasis

A chronic skin condition characterized by red, inflamed patches covered with silvery scales resulting from an accelerated lifecycle of skin cells.

Silvery Scales

often describes skin conditions or features of animals where the skin or outer covering appears shiny and flake-like.

Basal Cell Carcinoma

A type of skin cancer that begins in the basal cells—cells within the skin that produce new skin cells as old ones die off.

Squamous Cell Carcinoma

A type of skin cancer that arises from the squamous cells, which are flat cells found in the outer layer of the skin.