Which of the Following Changes Would Not Be Considered a Likely

question 16

Multiple Choice

Which of the following changes would not be considered a likely source of changes in Real GDP according to real business cycle theory?

• A) a natural disaster
• B) a technological change
• C) a change in the price of an important input
• D) a change in the money supply
• E) none of the above

---

Definitions:

Absolute Advantage

The skill of a person, business, or nation to generate a product or offer a service more affordably per unit than any other competitor.

Cell Phones

Portable electronic devices used for communication purposes.

Herring

A type of fish that is widely consumed and known for its significant role in the marine food chain as well as its usage in various cuisines.

Absolute Advantage

The ability of a party to produce a greater quantity of a good, product, or service than competitors, using the same amount of resources.