Real Business Cycle Theories Focus on Changes in Potential GDP

question 173

True/False

Real business cycle theories focus on changes in potential GDP as the source of economic fluctuations.

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Definitions:

Causation

The action or process of causing something to happen or exist.

Level Of Education

Denotes the highest degree or stage of general education an individual has completed.

Income

The amount of money received on a regular basis from work, property, business, or as financial support.

Positively Correlated

A relationship between two variables in which they both move in the same direction, meaning that as one variable increases, the other also increases.