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Ao9 Ao9
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Posts: 1908
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8 years ago
A government policy that is consistent with real business cycle theory would be for
A) the monetary authority to expand and contract the nominal money supply in response to shocks to total factor productivity.
B) government to smooth out tax distortions over time.
C) government to vary its spending in response to shocks to total factor productivity.
D) government to vary its lump-sum tax collections in response to changes in total factor productivity.
Textbook 
Macroeconomics

Macroeconomics


Edition: 5th
Author:
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GordisGordis
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#1
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Posts: 1906
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8 years ago
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Ao9 Author
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#2
8 years ago
You're sharp, thanks!
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#3
8 years ago
You're welcome Wink Face Message me if you need any more assistance with your other questions.
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