Business, 28.12.2019 04:31 eelebron0905

According to the real business cycle models, a. the federal reserve can affect inflation and real gdp by using monetary policy to influence the money supply. b. inflation can change due to movements in the money supply, however, fluctuations in real gdp are mainly explained by changes in the level of technology. c. changes in the level of technology are the main causes of inflation and fluctuations in real gdp. d. wages and prices adjust quickly through rational expectations, so that monetary policy movements will create changes in the money supply which create fluctuations in real gdp.

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