706 PA R T T W E LV E S H O R T - R U N E C O N O M I C F L U C T U AT I O N S
and 26 were able to examine the determinants of real variables (real GDP,
Christian Louboutin Sandals, the real
interest rate,
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money supply and the price level).
Do these assumptions of classical macroeconomic theory apply to the world in
which we live? The answer to this question is of central importance to under-
standing how the economy works: Most economists believe that classical theory de-
scribes the world in the long run but not in the short run. Beyond a period of several
christian dior shoes for women real GDP
Linear Mode
