In Real Business Cycle Models, in Order to Increase Real

question 134

Multiple Choice

In real business cycle models, in order to increase real GDP after a negative technology shock, the government can
I. increase the quantity of money.
II. decrease the quantity of money.

• A) only I
• B) only II
• C) both I and II
• D) neither I nor II

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Definitions:

Owners

Individuals or entities that hold the legal right or title to property, possessions, or an entity.

Industry

A particular form or branch of economic or commercial activity.

Corporate Debt Instruments

Financial securities issued by corporations to borrow money, such as bonds and debentures.

Similarities

The characteristics or qualities that make items or scenarios alike.