Which of the following is correct? A general assumption in real business cycle models is that
a. dissimilar individuals populate the economy.
b. the labor market does not clear.
c. the economy is populated by a group of identical individuals.
d. the economy experiences involuntary unemployment.
Question 2
According to the classical system, saving is a function of
a. income.
b. the real interest rate.
c. the real wage.
d. the profitability of firms.
e. all of the above.
