A Theory of Aggregate Economic Fluctuations Called Real Business Cycle

question 2

Multiple Choice

A theory of aggregate economic fluctuations called real business cycle theory holds that

• A)changes in the real money supply are the only demand shocks that affect the natural rate of output.
• B)aggregate demand shocks do affect the natural rate of output.
• C)aggregate supply shocks do affect the natural rate of output.
• D)changes in net exports are the only demand shocks that affect the natural rate of output.

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