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Suppose someone shows you a model and claims that it contains the shock to explain all business cycles. In response to the shock, real GDP

Suppose someone shows you a model and claims that it contains the shock to explain all business cycles. In response to the shock, real GDP goes up by one percent. What would you expect to happen to consumption? Question 12 options: Goes up immediately by less than a percent. Goes up with a lag by more than a percent. Goes down immediately by less than a percent. Goes up with a lag by less than a percent

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