According to Real Business Cycle Theory,business Cycles

question 1

Multiple Choice

According to real business cycle theory,business cycles

• A)can be eliminated with appropriate monetary and fiscal policy.
• B)are natural and efficient reactions to changes in productivity.
• C)do not occur.
• D)occur infrequently.
• E)none of the above.

---

Definitions:

National Debt

The total amount of money that a country's government has borrowed and is yet to repay.

Domestic Policy

Government strategies and decisions specifically related to internal affairs of a country, including education, healthcare, economy, and social welfare.

Foreign Policy

A government's strategy in managing its relationships with other nations, concerning diplomacy, trade, and national security.

Radical Conservatism

A political ideology that combines conservative values and policies with radical means of achieving them.