With Which of the Following Statements Would a "Real Business

question 219

Multiple Choice

With which of the following statements would a "real business cycle" theorist most closely agree?

• A)"Monetary policies have the greatest impact on real GDP when they are anticipated."
• B)"Expansionary monetary policy allows the central bank to control inflation and unemployment simultaneously."
• C)"Wages adjust rapidly to changes in inflation as long as expectations are formed rationally."
• D)"Technological shocks to the economy affect only aggregate demand in the short run."

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Definitions:

Operating Cycle

The average time period between the acquisition of inventory and the collection of cash from accounts receivable, reflecting the efficiency of a company's operations.

Operating Cycle

The Operating Cycle refers to the period of time it takes for a company to purchase inventory, sell the products, and turn the sales into cash.

Classified Balance Sheets

Balance sheets that organize assets and liabilities into subcategories, such as current and non-current, to provide a clearer financial picture.

Long-Term Investments

Assets that a company intends to hold for more than one fiscal year, such as stocks, bonds, or real estate.