In the simple Keynesian cross model with no government or foreign sectors, the value of the multiplier is defined as
A) 1/(MPC - 1). B) 1/(1 - MPC). C) 1/(MPC + 1). D) 1/MPC.
Question 2
Real business cycle theory emphasizes the role of ________ in causing economic fluctuations.
A) agriculture B) technological change
C) natural disasters D) wars