Which of the following is true?
A. The structural deficit changes over the business cycle.
B. MPS + MPC = 1.
C. At equilibrium expenditure, unplanned changes in inventory must be positive.
D. In the real business cycle model, there is no AD curve.
Answer:B
Which of the following is true?
A. The structural deficit changes over the business cycle. B. MPS + MPC = 1. C. At equilibrium expenditure, unplanned changes in inventory must be positive. D. In the real business cycle model, there is no AD curve.