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Consider the Real Business Cycle model, where the only source of exogenous fluctuations is productivity shocks. A one-time negative technology shock cannot lead to: Question

Consider the Real Business Cycle model, where the only source of exogenous fluctuations is productivity shocks. A one-time negative technology shock cannot lead to: Question 4 Answer a. A temporary (several periods) decline in output level b. A permanent decline in the level of technology c. A permanent decline in output level d. None of the other answers is correct e. A decline in output level only in the same period as the shock happens

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