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A government policy that is consistent with real business cycle theory would be for

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A government policy that is consistent with real business cycle theory would be for

A government policy that is consistent with real business cycle theory would be for
A) government to vary its spending in response to shocks to total factor productivity.
B) the monetary authority to expand and contract the nominal money supply in response to shocks to total factor productivity.
C) government to smooth out tax distortions over time.
D) government to vary its lump-sum tax collections in response to changes in total factor productivity.
E) government to vary its spending and taxation decreases in response to shocks that affect the price level.

Textbook

Macroeconomics, Canadian Edition

Edition: 5^th

Author: Williamson

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smitch6 Author

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6 years ago

I appreciate what you did here, answered it right Smiling Face with Open Mouth

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Thanks for your help!!

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