According to the Real Business Cycle Model

question 71

Multiple Choice

According to the real business cycle model,

• A)changes in money growth cause output fluctuations in both the short run and long run.
• B)changes in money growth cause output fluctuation in the long run, but not in the short run.
• C)there is no causal link between the money supply and output.
• D)most observed changes in the money supply are independent of previous changes in output.

---

Definitions:

Carbon Dioxide Fixation

Process by which carbon dioxide gas is attached to an organic compound; in photosynthesis, this occurs in the Calvin cycle reactions.

Calvin Cycle

A series of biochemical reactions that take place in the stroma of chloroplasts in photosynthetic organisms, playing a crucial role in converting carbon dioxide and other compounds into glucose.

3PG

3-phosphoglycerate, an intermediate in the glycolytic pathway and the Calvin cycle, crucial for the synthesis of glucose and other carbohydrates.

CAM Plant

A plant that utilizes Crassulacean Acid Metabolism, an adaptation allowing them to conserve water by opening stomata and admitting CO2 during the night.