Real business cycle theory emphasizes the role of
A) government spending as a cause of economic fluctuations.
B) shocks to the money supply as a cause of economic fluctuations.
C) demand shocks as a cause of economic fluctuations.
D) technology shocks as a cause of economic fluctuations.
Question 2
The supply of money in the U.S. economy is determined primarily by
A) the demand for money in the economy.
B) the actions of the Federal Reserve and the banking system.
C) decisions made by the Federal Reserve and the U.S. Treasury.
D) consumers and the banking system.
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