Which of the Following Is a Criticism of Real Business

question 39

Multiple Choice

Which of the following is a criticism of real business cycle theory?

• A) Real business cycle theory assumes that money wage rates are sticky.
• B) Real business cycle theory fails to explain the phenomenon of economic growth.
• C) Real business cycle theory believes that productivity changes are caused by technology changes when in fact they are caused by changes in aggregate demand.
• D) None of the above are criticisms of real business cycle theory.

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Definitions:

Chytrids

Fungi with flagellated spores.

Saccharomyces Cerevisiae

A species of yeast commonly used in baking and brewing due to its ability to ferment sugars.

Baker's Yeast

A single-celled fungus used in baking and fermenting alcoholic beverages, known for its ability to convert sugars into carbon dioxide and alcohol.

Infects Trees

The process by which pathogens such as bacteria, viruses, or fungi invade and cause diseases in tree species.