The Factor Leading to Business Cycles in the Real Business

question 141

Multiple Choice

The factor leading to business cycles in the real business cycle theory is changes in the growth rate of

• A) labor supply.
• B) the money wage rate.
• C) productivity.
• D) the quantity of money.

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Definitions:

Main Purpose Rule

A legal principle stating that if the main purpose of a transaction is to benefit the guarantor, then a written agreement isn't necessary to enforce the guaranty.

Debt

An amount of money borrowed by one party from another, with the condition that it is to be paid back, often with interest.

Enforceable

A legal term referring to a contract or agreement that is recognized by law and can be upheld in a court of law.

Oral Order

A verbal command or instruction to perform a task or service, which can be legally binding in certain contexts.