In the Real Business Cycle Model the Causes of Business

question 10

Multiple Choice

In the real business cycle model the causes of business cycles are:

• A) Sticky wages and prices.
• B) Technology shocks.
• C) Unanticipated price level changes.
• D) Changes to aggregate demand.

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Definitions:

Government Price Controls

Measures implemented by a government to regulate the price levels of commodities and services with the aim to maintain affordability, prevent inflation, or ensure a minimum income for producers.

Corruption

The misuse of government power, with which one has been entrusted or assigned, to obtain private gain; includes payments from individuals or companies to secure advantages in obtaining government contracts, avoiding government regulations, or obtaining inside knowledge about forthcoming policy changes.

Government Subsidized

Financial support provided by the government to organizations, industries, or individuals, often to encourage growth or support essential services.

Taxpayers

Individuals or entities that are obligated to make payments to governmental authorities, typically in the form of taxes.