Among the pioneers of real business cycle theory is ________.
A) Edward Prescott
B) Robert Lucas
C) Robert Solow
D) Paul Volcker
Question 2
A money supply increase in the New Keynesian model is not neutral because
A) consumers are fooled into working harder.
B) the real interest falls, the quantity of output demanded rises, and firms supply more output.
C) productivity rises, increasing output supply.
D) bank lending rises.