Which of the Following Pieces of Evidence Is Most Consistent

question 395

Multiple Choice

Which of the following pieces of evidence is most consistent with the real business cycle theory?

• A) Real GDP and the quantity of money move closely together.
• B) Productivity and GDP move closely together.
• C) Money wage rates take some time to adjust to price changes.
• D) Labor supply decisions do not seem to depend on real interest rates.

---

Definitions:

Revenues

Aggregate income produced from the core activities of a business, mainly through the sale of goods and services.

Expenses

The outflow of money or other resources from a person or company to pay for goods or services.

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, detailing revenue and expenses to show net income or loss.

Revenues

The income generated from normal business operations and includes discounts and deductions for returned merchandise.