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Author Question: In real business cycle models and new classical models a. monetary factors are responsible for ... (Read 73 times)

charchew

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on: Jun 30, 2018
In real business cycle models and new classical models
 
  a. monetary factors are responsible for fluctuations in output and employment.
  b. changes in unemployment are involuntary.
  c. markets always clear.
  d. prices and wages are perfectly flexible.
  e. none of the above.

Question 2

Assume that the money stock is the intermediate target and money demand is totally interest- inelastic. Then, the
 
  a. LM schedule will be horizontal.
  b. LM curve schedule would be vertical.
  c. IS curve would be horizontal.
  d. None of the above


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Pswine

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Reply #1 on: Jun 30, 2018
Answer to Question 1

D

Answer to Question 2

B


charchew

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Reply 2 on: Jun 30, 2018
Great answer, keep it coming :)

CAPTAINAMERICA

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Reply 3 on: Yesterday
Wow, this really help

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