Which of the Following Is True of the Real Business

question 37

Multiple Choice

Which of the following is true of the real business cycle approach to stabilization policy?

• A)It is necessary, but it should not be overused.
• B)It is necessary during recessions but not during booms.
• C)It is unnecessary because output fluctuations reflect productivity disturbances.
• D)It is unnecessary because output fluctuations are largely the result of policy mistakes by the Fed.

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Definitions:

Brain Development

The process of growth and maturation of the brain, which includes changes in structure, function, and complexity over time.

External Stimuli

External forces or conditions that influence behavior, perception, or physiological responses.

Formal Operations

The final stage in Piaget's theory of cognitive development, marked by the ability to think abstractly and reason hypothetically.

Abstract Thinking

The cognitive ability to understand concepts that are not grounded in physical reality, and to use general principles to solve problems and generate new ideas.