According to real business cycle theory, which of the following events is least likely to cause...
According to real business cycle theory, which of the following events is least likely to cause a recession ?
A. a decline in the money supply B. a decline in in capital labour
C. A decline in productivity D.A decline in labour supply
Detailed answer please
Homework Answers
option A : a decline in money supply is correct
Recession as dependent on financial factor.They focus on overexpansion of credit or financial risk or contraction of money and credit onset of recession.The monetarism which blames recession on insufficient growth in money supply.
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According to real business cycle theory, which of the following
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Read Eye on the Business Cycle. What, according to the mainstream theory of the business cycle, is the most common source of recession: a decrease in aggregate demand, a decrease in aggregate supply, or both? Which is the most likely component of aggregate demand to start a recession? How does the aggregate demand multiplier influence a recession? is the most common source of recession. According to the mainstream theory of the business cycle, a decrease in The most likely component...
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