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In the real business cycle model (RBC), what does a negative

Paper help Economics In the real business cycle model (RBC), what does a negative

Economics

In the real business cycle model (RBC), what does a negative

In the real business cycle model (RBC), what does a negative r… Show more RBC = Real Business Cycle Theory a. In the real business cycle model (RBC), what does a negative real shock do to inflation: Does it rise, fall, or remain unchanged? b. In RBC, what does a negative real shock do to spending growth (AD growth): Does it rise, fall, or remain unchanged? c. In RBC, what does a fall in spending growth (i.e. a leftward shift of the AD curve) do to real growth: Does it rise, fall or remain unchanged? • Show less

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