The Real Business Cycle Theory States That

question 5

Multiple Choice

The real business cycle theory states that

• A)changes in money supply result in output fluctuations
• B)labor supply is highly elastic in response to permanent changes in the real wage rate
• C)the most important economic disturbances arise from supply shocks or unanticipated changes in productivity
• D)firms are reluctant to change prices due to the menu costs involved
• E)a change in labor productivity will not have a long-lasting effect on real output

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Hospice Services

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An expected condition or state, often considered to be the standard or average.

Complicated

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