Critics of the Real Business Cycle Theory Claim That

question 426

Multiple Choice

Critics of the real business cycle theory claim that

• A) changes in technology cannot cause economic growth.
• B) both real and nominal variables change during the business cycle.
• C) the intertemporal substitution effect is too weak to account for changes in labor supply.
• D) Both answers B and C are correct.

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Definitions:

Sullivan's

An approach in psychology highlighting the significance of interpersonal interactions and the social context in shaping individual personality, a rephrased definition focusing on Harry Stack Sullivan's contributions.

Cognition

The mental action or process of acquiring knowledge and understanding through thought, experience, and the senses, encompassing processes such as memory, perception, and problem-solving.

Sullivan's Theory

A psychoanalytic theory by Harry Stack Sullivan, emphasizing the role of interpersonal relationships and social experiences in personality development.

Cognition

The mental action or process of acquiring knowledge and understanding through thought, experience, and the senses.