Type T or F at the end of the statement to indicate whether it is true or false. Please also provide an explanation for each choice. A) According to the Real Business Cycle Model, actual output generally fluctuates much more than the full-employment level of output. B) According to the Real Business Cycle Model, permanent productivity shocks drive fluctuations in GDP over the business cycle. C) According to the Real Business Cycle Model, decreases in employment during recessions reflect large temporary decreases in labor supply. D) The United States' large current account deficit reflects mainly its large trade deficits with China and Japan. E) Labor productivity in the United States is strongly procyclical, falling during recessions and rising during recoveries.
Type T or F at the end of the statement to indicate whether it is true or false. Please also provide an explanation for each choice.
A) According to the Real Business Cycle Model, actual output generally fluctuates much more than the full-employment level of output.
B) According to the Real Business Cycle Model, permanent productivity shocks drive fluctuations in
C) According to the Real Business Cycle Model, decreases in employment during recessions reflect large temporary decreases in labor supply.
D) The United States' large current account deficit reflects mainly its large
E) Labor productivity in the United States is strongly procyclical, falling during recessions and rising during recoveries.
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