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:

Property Rights

Legal rights to use, control, and derive benefits from a resource or property, including the right to exclude others.

Negatively Affects

Causes harm or reduces the quality, value, or performance of something.

Air Traffic

The controlled movement of aircraft within the Earth’s atmosphere, especially the scheduling and management of airplane takeoffs and landings.

Carbon Tax

A fee imposed on the burning of carbon-based fuels (coal, oil, gas) aimed at reducing greenhouse gas emissions.