Author Question: In the aggregate production function Y = A , real business cycle theory treats ________ as the key ... (Read 101 times)

maegan_martin

  • Hero Member
  • *****
  • Posts: 532
In the aggregate production function Y = A , real business cycle theory treats ________ as the key independent variable.
 
  A) potential output
  B) productivity
  C) the capital stock
  D) the labor input

Question 2

Under fiscal stabilization policy in the New Keynesian model, after a negative shock to output,
 
  A) the government increases expenditures and the central bank increases the money supply.
  B) the government increases expenditures and the central bank decreases the money supply.
  C) the government decreases expenditures and the central bank increases the money supply.
  D) the government decreases expenditures and the central bank decreases the money supply.



jennafosdick

  • Sr. Member
  • ****
  • Posts: 345
Answer to Question 1

B

Answer to Question 2

A



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Illness; diuretics; laxative abuse; hot weather; exercise; sweating; caffeine; alcoholic beverages; starvation diets; inadequate carbohydrate consumption; and diets high in protein, salt, or fiber can cause people to become dehydrated.

Did you know?

For about 100 years, scientists thought that peptic ulcers were caused by stress, spicy food, and alcohol. Later, researchers added stomach acid to the list of causes and began treating ulcers with antacids. Now it is known that peptic ulcers are predominantly caused by Helicobacter pylori, a spiral-shaped bacterium that normally exist in the stomach.

Did you know?

Congestive heart failure is a serious disorder that carries a reduced life expectancy. Heart failure is usually a chronic illness, and it may worsen with infection or other physical stressors.

Did you know?

The oldest recorded age was 122. Madame Jeanne Calment was born in France in 1875 and died in 1997. She was a vegetarian and loved olive oil, port wine, and chocolate.

Did you know?

Human kidneys will clean about 1 million gallons of blood in an average lifetime.

For a complete list of videos, visit our video library