Shocks to Long-Run Aggregate Supply Can Be a Source of Business

question 42

Multiple Choice

Shocks to long-run aggregate supply can be a source of business fluctuations ________.

• A)only in real business cycle models
• B)only in new Keynesian models
• C)in both real business cycle and new Keynesian models
• D)only if the money supply rises

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Definitions:

Tendon

A band of fibrous connective tissue that connects muscle to bone, facilitating movement by transmitting forces.

Cartilage

A flexible, rubbery connective tissue found in various parts of the body, including the joints, ear, and nose, that provides support and reduces friction.

Deltoid

A large, triangular muscle covering the shoulder joint that is responsible for lifting the arm and giving the shoulder its range of motion.

Abducts

Refers to the movement of a body part away from the central axis or midline of the body.