Which of the Following Statements Is (Are)correct

question 18

Multiple Choice

Which of the following statements is (are) correct?

• A)Real business cycle theorists remain convinced that the business cycle can be explained as an equilibrium phenomenon
• B)According to real business cycle theorists,fluctuations in output come as optimizing agents respond to real shocks that affect production possibilities
• C)Real business cycle theorists consider policies to prevent fluctuations in output unnecessary
• D)Both a and b
• E)All of the above

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Definitions:

Resold

A term referring to items that have been sold and then sold again, either by the original buyer or by another party.

Additional Paid-In Capital

The amount of equity capital that is more than the par value of issued shares, representing additional investment from shareholders.

Stock Dividend

A distribution of additional shares of a company's stock to its shareholders, usually in lieu of cash dividends.

Cash Dividends

Direct payments of profit made to shareholders, proportionate to the number of shares they own.