« previous next »

Author Question: Describe and explain the real business cycle theory. What will be an ideal ... (Read 22 times)

fasfsadfdsfa

  • Hero Member
  • *****
  • Posts: 554
on: Jun 30, 2018
Describe and explain the real business cycle theory.
 
  What will be an ideal response?

Question 2

The date at which a recession starts is called the
 
  A) trough. B) peak. C) depression. D) plateau.


cegalasso

  • Sr. Member
  • ****
  • Posts: 295
Reply #1 on: Jun 30, 2018
Answer to Question 1

The real business cycle theory is a modification of the new classical theory that states that money is neutral in its impact on the economy and only real supply-side factors matter in influencing employment and real output. Real Gross Domestic Product (GDP) is determined by real variables such as the supply of inputs and technology and monetary policy only affects the price level.

Answer to Question 2

B


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Drug-induced pharmacodynamic effects manifested in older adults include drug-induced renal toxicity, which can be a major factor when these adults are experiencing other kidney problems.

Did you know?

There are more bacteria in your mouth than there are people in the world.

Did you know?

Famous people who died from poisoning or drug overdose include, Adolf Hitler, Socrates, Juan Ponce de Leon, Marilyn Monroe, Judy Garland, and John Belushi.

Did you know?

Sildenafil (Viagra®) has two actions that may be of consequence in patients with heart disease. It can lower the blood pressure, and it can interact with nitrates. It should never be used in patients who are taking nitrates.

Did you know?

Despite claims by manufacturers, the supplement known as Ginkgo biloba was shown in a study of more than 3,000 participants to be ineffective in reducing development of dementia and Alzheimer’s disease in older people.

The nitrogen cycle. Numbers represent fluxes as 1012 g N per year (data from Schlesinger 1991, after The nitrogen cycle. Numbers represent fluxes as 1012 g N per year (data from Schlesinger 1991, after
The Female Menstrual Cycle The Female Menstrual Cycle
The Four Steps of The Cell Cycle The Four Steps of The Cell Cycle
nitrogen cycle nitrogen cycle
Prove that each of the following real functions f has a discontinuity. For each function, ... Prove that each of the following real functions f has a discontinuity. For each function, ...
Life cycle of a moss (Polytrichum) Life cycle of a moss (Polytrichum)
Video: Olfaction. or the sense of smell

For a complete list of videos, visit our video library