Which of the Following Is NOT One of the Criticisms

question 318

Multiple Choice

Which of the following is NOT one of the criticisms of real business cycle theory?

• A) Inter- temporal substitution is too weak.
• B) The theory is built on weak microeconomic foundations.
• C) The money wage rate is sticky in the short run.
• D) Productivity fluctuations are the result of the business cycle, not the cause of business cycles.

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Definitions:

Parallel Distributed Processing Model

A model of brain function that proposes knowledge is represented in a network of interconnected units, mimicking neural networks, allowing for simultaneous processing of information.

Spreading Activation Model

A cognitive theory suggesting that ideas in memory are linked and that the activation of these links spreads across related ideas.

Connectivity

In neuroscience, it refers to the way in which different parts of the brain are connected and communicate with each other.

Semantic Association

The relation or connection between different meanings or understandings of words or concepts.