In the real business cycle model, business cycles are a. ...

[Diane]

In the real business cycle model, business cycles are
 
  a. efficient and do not represent lost output.
  b. driven by technology shocks.
  c. occur when markets clear.
  d. all of the above.
  e. None of the above

Question 2

A simultaneous reduction in both taxes and the money stock will always
 
  a. increase interest rates.
  b. lower income and raise the interest rate.
  c. lower income and raise the interest rate.
  d. increase income.
  e. raise income and raise the interest rate.

[asware1]

Answer to Question 1

D

Answer to Question 2

A

[Diane]

Excellent

[AngeliqueG]

Gracias!