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Author Question: Shocks to long-run aggregate supply can be a source of business fluctuations ________. A) only in ... (Read 100 times)

schs14

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  • Posts: 569
on: Jun 30, 2018
Shocks to long-run aggregate supply can be a source of business fluctuations ________.
 
  A) only in real business cycle models
  B) only in new Keynesian models
  C) in both real business cycle and new Keynesian models
  D) only if the money supply rises

Question 2

In the new Keynesian model, an ________ increase in productivity will impact ________.
 
  A) unanticipated; both aggregate demand and aggregate supply
  B) anticipated; both aggregate demand and aggregate supply
  C) anticipated; aggregate demand, but not aggregate supply
  D) unanticipated; aggregate demand, but not aggregate supply


debra928

  • Sr. Member
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Reply #1 on: Jun 30, 2018
Answer to Question 1

C

Answer to Question 2

B


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