Author Question: In the real business cycle model, business cycles are a. efficient and do not represent lost ... (Read 106 times)

Diane · **on:** Jun 30, 2018

In the real business cycle model, business cycles are

a. efficient and do not represent lost output.
b. driven by technology shocks.
c. occur when markets clear.
d. all of the above.
e. None of the above

Question 2

A simultaneous reduction in both taxes and the money stock will always

a. increase interest rates.
b. lower income and raise the interest rate.
c. lower income and raise the interest rate.
d. increase income.
e. raise income and raise the interest rate.