With Which of the Following Statements Would a "Real Business

question 210

Multiple Choice

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

• A)"Monetary policies have the 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 rapidly to changes in inflation as long as expectations are formed rationally."
• D)"Technological shocks to the economy affect only aggregate demand in the short run."
• E)"Workers and firms are reluctant to adjust wages after a shock."

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Definitions:

Id's Drives

Psychoanalytic concept referring to the instinctual, unconscious drives and desires that seek immediate satisfaction according to the pleasure principle.

Socially Acceptable

Behaviors or norms that are considered appropriate and within the bounds of respectability within a society or community.

Ego

In psychoanalytic theory, the part of the mind that mediates between the conscious and the unconscious and is responsible for reality testing and a sense of personal identity.

Executive

Pertains to high-level management roles in organizations, responsible for making major decisions and directing overall operations.