A Theory of Aggregate Economic Fluctuations Called Real Business Cycle

question 2

Multiple Choice

A theory of aggregate economic fluctuations called real business cycle theory holds that

• A)changes in the real money supply are the only demand shocks that affect the natural rate of output.
• B)aggregate demand shocks do affect the natural rate of output.
• C)aggregate supply shocks do affect the natural rate of output.
• D)changes in net exports are the only demand shocks that affect the natural rate of output.

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Definitions:

Authoritative

A parenting style characterized by high responsiveness and high demands, fostering independence with guidelines.

Parenting Style

The manner in which parents raise their children, including disciplinary strategies, warmth and nurturance, and communication.

Behavioral Control

Strategies and techniques used to manage or guide an individual's behavior towards meeting certain standards or achieving specific goals.

Authoritarian

A rephrased definition: Describing a manner of governance or leadership that demands strict obedience and limits personal freedoms, often without consultation or input from those being led.