Which of the following is correct? A general assumption in real ...

[CBme]

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.

[jazzlynnnnn]

Answer to Question 1

C

Answer to Question 2

B