41) The three business cycle models differ mostly in their treatment of ________

ID: 1098876 • Letter: 4

Question

41) The three business cycle models differ mostly in their treatment of ________.

A) aggregate demand

B) short-run aggregate supply

C) long-run aggregate supply

D) productivity shocks

42) Prices are regarded as sticky in ________.

A) new Keynesian and traditional Keynesian theory.

B) real business cycle and new Keynesian theory.

C) real business cycle and traditional Keynesian theory.

D) traditional Keynesian, new Keynesian and real business cycle theory.

43) Expansionary policy only leads to inflation, but does not raise output in ________.

A) traditional Keynesian theory.

B) new Keynesian theory.

C) real business cycle theory.

D) traditional Keynesian, new Keynesian and real business cycle theory.

41) B) short-run aggregate supply

42) A) new Keynesian and traditional Keynesian theory.

43) C) real business cycle theory.

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