According to Real-Business-Cycle Theory

question 200

Multiple Choice

According to real-business-cycle theory,

• A)monetary factors affecting aggregate demand cause macroeconomic instability.
• B)recessions result from declines in long-run aggregate supply, rather than decreases in aggregate demand.
• C)when real wages fall during recessions, "real" unemployment rates rise.
• D)the net long-run costs of business fluctuations are severe.

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