The Real-Business-Cycle Theory Holds That Business Fluctuations Are Caused by

question 71

Multiple Choice

The real-business-cycle theory holds that business fluctuations are caused by

• A)factors affecting aggregate demand.
• B)incorrectly anticipated government stabilization policies.
• C)significant changes in technology and resource availability.
• D)"stop-and-go" monetary policies.

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Definitions:

Cyclical Variation

A pattern in time series data that occurs over longer periods and is often related to economic or business cycles.

Seasonal Variation

Fluctuations in data or activity that occur at regular intervals due to seasonal factors.

Forecasting

The process of making predictions about the future based on past and present data and analysis of trends.

Exponential Smoothing

A forecasting technique that applies diminishing weights to past observations, with recent observations given more weight than older observations.