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:

Cosmic Theory

Cosmic Theory relates to hypotheses and models that describe the origin, development, and larger structures of the cosmos.

Self-Consciousness

The awareness of oneself as an individual, including one's thoughts, feelings, and physical presence.

Adaptive Efforts

Activities or changes made by individuals or systems in response to environmental or situational demands to maintain or improve functioning.

Adaptive Responses

Behaviors or changes that allow an organism or system to adjust to new conditions or to preserve functionality in the face of external challenges.