Which of the Following Statements Is (Are)correct? According to Real

question 31

Multiple Choice

Which of the following statements is (are) correct? According to real business cycle theory,

• A)the desirable monetary policy would appear to be one that results in a slow steady growth in the money supply and,thus,stable prices.
• B)there is some role for activist monetary stabilization policy of a Keynesian type.
• C)changes in aggregate demand cannot impact output.
• D)Both a and b
• E)Both a and c

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Definitions:

Marginal Revenue Product

The extra income obtained by employing an additional unit of a production factor.

Total Losses

The complete financial loss amount suffered by an entity, typically used in insurance when referring to a loss where the insured item is totally damaged or destroyed.

Security Guards

Personnel employed to protect property, assets, or people, often found in various establishments or public areas.

Substitution Effect

The change in consumption patterns due to a change in relative prices, leading consumers to substitute one good for another more or less expensive one.