Models That Focus on Factors Other Than Changes in the Money

question 109

Multiple Choice

Models that focus on factors other than changes in the money supply to explain fluctuations in real GDP are called

• A)nonmonetary business cycle models.
• B)real business cycle models.
• C)rational expectations models.
• D)short-run macroeconomic models.
• E)new Keynesian models.

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Definitions:

Equal Dignities Rule

A legal principle stating that agents appointed to perform tasks that must be in writing, such as real estate transactions, also must have their authority granted in writing.

Mortgage

A loan secured by the collateral of specified real estate property that the borrower is obliged to pay back with a predetermined set of payments.

Assignment

The transfer of rights, property, or responsibilities from one party to another.

Time is of the Essence

A contractual clause indicating that the timing of certain actions or tasks is critical and failure to perform them on time constitutes a breach of contract.