With Which of the Following Statements Would a "Real Business

question 94

Multiple Choice

With which of the following statements would a "real business cycle" theorist most closely agree?

• A)"Monetary policies have greatest impact on real GDP when they are anticipated."
• B)"Expansionary monetary policy allows the central bank to control inflation and unemployment simultaneously."
• C)"Wages adjust slowly to changes in inflation as long as expectations are formed rationally."
• D)"Technological shocks to the economy explain deviations of real GDP from its potential level."

---

Definitions:

Full Information

A situation or condition where all relevant data and knowledge is available to all participants in a decision-making process.

Nash Equilibrium Strategies

Nash Equilibrium Strategies refer to a situation in a game where no player can benefit by changing their strategy while the other players keep theirs unchanged.

Big Ten Football Coach

A head coach responsible for leading a football team within the Big Ten Conference, an NCAA Division I collegiate athletic conference in the United States.

Run the Ball

A sports strategy, particularly in football (soccer or American football), where the ball is advanced towards the goal or down the field by running with it instead of passing.