Which of the Following Pieces of Evidence Is Most Consistent

question 161

Multiple Choice

Which of the following pieces of evidence is most consistent with the real business cycle theory?

• A) Productivity and GDP move closely together.
• B) Labor supply decisions do not seem to depend on real interest rates.
• C) Money wage rates take some time to adjust to price changes.
• D) Real GDP and the quantity of money move closely together.

Distinguish between different market equilibriums: Cournot, collusion, and competitive.

Recognize characteristics of oligopolistic markets and how they differ from other market structures.

Apply the Stackelberg model to understand strategic advantages in sequential decision-making.

Analyze and compute equilibrium outcomes in duopolies using reaction functions.

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