The Complete Wage and Price Flexibility of the Real Business

question 73

Multiple Choice

The complete wage and price flexibility of the real business cycle framework implies that ________.

• A)the velocity of money is a constant
• B)the velocity of money times the money supply is equal to the nominal value of transactions over a given period of time
• C)aggregate output always equals potential output
• D)sustained economic contractions,like the Great Depression,cannot occur in real,historical time

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Definitions:

Cooperative

Involving mutual assistance in working toward a common goal, emphasizing teamwork and collaboration.

Team Oriented

A mindset or approach that prioritizes collaboration and collective effort towards achieving a common goal.

Barriers

Obstacles that hinder progress or prevent the achievement of goals.

Effective Communication

The ability to convey information to others successfully and efficiently, ensuring mutual understanding.