According to Real Business Cycle Models

question 26

Multiple Choice

According to real business cycle models

• A)the long-run Phillips curve is negatively sloped.
• B)the economy is normally operating below the natural rate of unemployment.
• C)unexpected changes in monetary policy are the major source of fluctuations in real GDP.
• D)the economy is normally at potential GDP.

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Definitions:

Percent Change

A mathematical calculation that shows how much a quantity has increased or decreased, expressed as a percentage.

Initial Value

The starting point or original amount before any changes, such as growth or depreciation, have been applied.

Final Value

The value of an investment at the end of a specified period, taking into account factors like principal, interest rate, and time.

Percent Change

The proportionate change in a value over time, represented as a percentage, to indicate increase or decrease.