Real Business Cycle Theorists Are Critical of Monetarist Reduced-Form Evidence

question 22

Multiple Choice

Real business cycle theorists are critical of monetarist reduced-form evidence because they believe

• A)money is the most important cause of changes in aggregate demand.
• B)there is reverse causation from the business cycle to money.
• C)there is reverse causation from money to the business cycle.
• D)business cycles do not exist.

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Definitions:

Definition of Abnormality

Criteria used to identify behaviors, thoughts, or feelings that deviate significantly from societal norms or expectations.

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