The Development Most Responsible for the Wide-Spread Introduction of Macroeconomic

question 27

Multiple Choice

The development most responsible for the wide-spread introduction of macroeconomic models built upon solid microeconomic foundations was the

• A) work of John Maynard Keynes.
• B) rational expectations revolution.
• C) popularization of supply-side economics.
• D) development of the Keynesian coordination failure model.

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Definitions:

Real GDP

Real GDP, which adjusts for price changes to offer a true measure of an economy's overall size and its growth trajectory.

Base-Year Prices

Prices of goods and services from a specific base year, used to calculate real values and remove the effect of inflation over time.

Real GDP

Gross Domestic Product adjusted for inflation, measuring the value of goods and services produced by a country in a specified period.

Measured

Quantitatively determined or estimated through a standard or unit of measurement.