A Key Element of Real Business Cycle Theory Is That

question 12

Multiple Choice

A key element of real business cycle theory is that

• A)labor supply is not responsive to changes in real wages.
• B)labor supply is highly elastic.
• C)as the wage increases,workers are richer and work less.
• D)none of the above.

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Definitions:

Soundness

The attribute of an argument when it is both logically valid and its premises are true.

Cogency

The quality of an argument being convincing or persuasive due to the truth of its premises and its logical structure.

Inductive Argument

Reasoning in which the premises seek to supply strong evidence for (not absolute proof of) the truth of the conclusion.

Strawberries

A red, sweet, juicy fruit having a seed-covered surface, grown on certain species of the genus Fragaria.