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In the neoclassical model seen in the class, which of the following statements is NOT true? A) The neoclassical model seen in class has no
In the neoclassical model seen in the class, which of the following statements is NOT true? A) The neoclassical model seen in class has no room for policy analysis and monetary policy. B) A productivity shock generates procyclical moves in C, I, N, and w, which match the data in the business cycle. C) An exogenouse labour supply shock generates a countercyclical move in real wages, which matches with what we see in the data. D) For persistent productivity shocks, the neoclassical model generates movements in the real interest rate that match the patterns in business cycle data. E) An exogenouse labour supply shock generates a countercyclical move in real wages, which does not match the data in the business cycle
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