Many of the Real Business Cycle Theorists Now Acknowledge That

question 189

Multiple Choice

Many of the real business cycle theorists now acknowledge that the actual economic data indicate that their models need an upward-sloping aggregate supply curve-and that this gives __________ a potential role in determining aggregate output.

• A) the natural rate hypothesis
• B) the permanent income hypothesis
• C) aggregate supply
• D) aggregate demand

---

Definitions:

Tax Revenue

Tax Revenue refers to the income that is gained by governments through taxation, which is then used to fund public services and governmental operations.

Excess Burden

The additional cost to society beyond taxes collected resulting from inefficiencies in market outcomes due to taxation or regulations.

Tax Revenue

Funds accumulated by governments as a result of taxation.

Inelastic

Describing demand that does not change significantly when the price of a good or service changes.