Critics of the Real Business Cycle Theory Claim That

question 101

Multiple Choice

Critics of the real business cycle theory claim that

• A)both real and nominal variables change during the business cycle.
• B)changes in technology cannot cause economic growth.
• C)the intertemporal substitution effect is too weak to account for changes in labour supply.
• D)Both answers B and C are correct.

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Definitions:

Age Group

A range of ages that individuals fall into which share similar demographic, physical, or psychological characteristics.

Partner

Often refers to a spouse or significant other in a romantic or committed relationship.

Depression

A mental health disorder characterized by persistently depressed mood or loss of interest in activities, causing significant impairment in daily life.

Memory Problems

Difficulties in remembering information, which can range from mild forgetfulness to severe impairments affecting daily life.