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If the Real Business Cycle Theory Were Correct, Then the Recession

question 115

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If the real business cycle theory were correct, then the recession that the U.S. experienced in 2008 was caused by:


Definitions:

Companionate Love

A form of love characterized by deep affection, attachment, and commitment.

Extrinsic Motivation

Motivation driven by external rewards such as money, fame, grades, and praise.

External Reward

Relates to incentives or rewards that come from an outside source, rather than from within, and motivate behavior.

Consummate Love

According to Sternberg’s theory, the most complete form of love, consisting of all three components—intimacy, passion, and commitment.

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