Real Business Cycle Theory Argues That the Primary Cause of Business

question 47

Multiple Choice

Real business cycle theory argues that the primary cause of business cycles is fluctuations in

• A) preferences.
• B) government spending.
• C) the importance of externalities.
• D) total factor productivity.
• E) monetary shocks.

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Definitions:

Organizational Change

The process by which organizations transform their structure, strategies, operational methods, or culture to adapt to changes in the external or internal environment.

Negative Job Attitudes

Feelings of dissatisfaction, disengagement, or negativity toward one's job, which can undermine performance and lead to turnover.

Negative Well-being

A state characterized by poor quality of life and subjective feeling of unhappiness, dissatisfaction, or distress.

Identity Gap

The discrepancy that occurs when there is a divergence between an individual's perceived self and the self that is expressed or seen by others.