The real business cycle theory and the new classical theory agree that

Related MCQs

• In real business cycle models and new classical models
• In real business cycle models, business cycles are caused by ------------------,while in new Keynesian model business cycles are caused by-------------------
• According to the real business cycle theory business cycles
• Real business cycle and new Keynesian models disagree upon
• In the real business cycle model, business cycles are
• The real business cycle theory is most closely related to
• In the real business cycle theory during a period when output is falling
• According to real business cycle theory an increase in taxes
• A usual assumption in real business cycle models is that the economy is populated by a group of identical individuals and the behavior of the group can then be explained in terms of the behavior of one individual, called a-------------
• New Keynesian would agree with all of the following except