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Business, 02.07.2020 17:01 andykuzy5447

The main difference between a real shock and a nominal shock is that A. a real shock is a disturbance to the real side of the economy that affects the IS curve or the FE line, while a nominal shock is a disturbance to money supply or money demand that affects the LM curve. B. a real shock only affects the real interest rate, while a nominal shock affects the nominal interest rate. C. a nominal shock is a disturbance to the economy that affects the IS curve or the FE line, while a real shock is a disturbance that affects the LM curve. D. a real shock represents a really large disturbance to the economy, while a nominal shock represents a relatively small or minor disturbance. According to the real business cycle theory, which one of the following shocks is not considered to be a productivity shock? A. Changes in the real demand for money. B. Development of new products or production methods. C. Introduction of new management techniques. D. Changes in the quality of capital, labor, or raw materials.

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