Which of the Following Models Focuses on How Productivity Shocks

question 113

Multiple Choice

Which of the following models focuses on how productivity shocks explain fluctuations in real GDP?

• A)the monetarist model
• B)the new classical model
• C)the real business cycle model
• D)the new Keynesian model

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Definitions:

Liquidity

The simplicity of transforming an asset into cash without impacting its market value.

Profitability

A measure of the efficiency and financial success of a company, typically evaluated through ratios such as net profit margin or return on investment.

Required Reserves

The portion of deposits that banks are required to keep on hand and cannot lend out, typically mandated by a central bank.

Total Assets

The sum of all assets owned by an entity, including cash, investments, property, and other valuables, used to assess financial health.