According to the real business cycle model, ________ in aggregate ...

[joesmith1212]

According to the real business cycle model, ________ in aggregate demand ________ GDP.
 
  A) increases; do not affect B) increases; increase
  C) increases; decrease D) decreases; increase

Question 2

An argument in favor of the Federal Reserve adopting inflation targeting is that in the long run, the Fed can have an impact on inflation but not on real GDP.
 
  Indicate whether the statement is true or false

[amynguyen1221]

Answer to Question 1

A

Answer to Question 2

TRUE

[joesmith1212]

Excellent

[skipfourms123]

Gracias!