A Criticism of the Real Business Cycle (RBC) Theory Is

question 219

Multiple Choice

A criticism of the real business cycle (RBC) theory is that

• A) potential GDP does not vary with changes in the quantity of money.
• B) productivity fluctuations might be caused by the business cycle.
• C) the money wage rate is flexible.
• D) All of the above answers are correct.

---

Definitions:

Autonomy

The capacity to make an informed, uncoerced decision independently.

Organizational Conflict

The discord that arises when the goals, interests, or values of different individuals or groups within an organization are incompatible.

Causes

Factors or events that bring about certain effects or results.

Relationship Conflict

Disagreements or discord arising from interpersonal interactions that can affect morale and productivity.