According to Real Business Cycle Theory, the Primary Causes of Business

question 31

Multiple Choice

According to real business cycle theory, the primary causes of business cycles are

• A) shocks to aggregate demand.
• B) monetary factors.
• C) waves of self-fulfilling optimism and pessimism.
• D) fiscal shocks.
• E) technology shocks.

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Definitions:

Bodily Arousal

A physiological reaction to stimuli that involves increased physical activity, such as elevated heart rate, blood pressure, and energy level, often in response to excitement, stress, or fear.

Emotion

A complex psychological state involving three distinct components: a subjective experience, a physiological response, and a behavioral or expressive response.

Paul Ekman

A psychologist known for his work on the facial expressions and emotions, and the co-discoverer of microexpressions.

Facial Expressions

Visible changes in the face that convey emotions, intentions, or social information to others.