Real Business Cycle Theory Argues That

question 253

Multiple Choice

Real business cycle theory argues that:

• A) changes in inventories are the cause of the business cycle.
• B) fluctuations in the rate of growth of total factor productivity cause the business cycle.
• C) aggregate demand is more important than aggregate supply in identifying the causes of the business cycle.
• D) changes in the money supply are the primary cause of the business cycle.

---

Definitions:

Perceive Hunger

The sensation or awareness of the need to eat, triggered by physiological signals in the body.

Driving Force

An element that pushes or influences individuals or groups to act or react in a particular way.

More Likely

A phrase indicating a higher probability or chance of something happening or being the case.

Excessive Internet Socializing

Engaging in social interactions online to an extent that it adversely affects one's physical, psychological, or social well-being.