Recall the Application Which Questions Whether a Standard Real Business

question 121

Multiple Choice

Recall the Application which questions whether a standard real business cycle model can be used to explain both the origin and severity of the Great Depression to answer the following question(s) .
-According to the real business cycle model, if negative technology shocks were responsible for the origin and severity of the Great Depression, output would be expected to ________ and real income would be expected to ________.

• A) decline; decline
• B) decline; rise
• C) rise; decline
• D) rise; rise

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Definitions:

Producing

The act of creating, manufacturing, or otherwise bringing into existence goods and services.

Purchase Requisition

An official request or document that a company uses to inform the purchasing department of items it needs to order.

Legal Contract

A legally binding agreement between two or more parties that is enforceable by law.

Operations Management System

A framework or methodology designed to plan, control, and improve the processes that produce goods or services.