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:

Power Drills

Electric tools designed for drilling holes or driving fasteners into various materials.

Marginal Product

Marginal product is the additional output that is produced by using one more unit of a particular input, keeping all other inputs constant.

Optimal Labor Employment

The most efficient level of labor usage where the additional cost of employing one more worker equals the additional revenue generated.

Sewing Machines

Mechanical or electronic devices used to stitch fabric and other materials together with thread.