Real-Business-Cycle Theory Suggests That Changes in

question 21

Multiple Choice

Real-business-cycle theory suggests that changes in

• A)monetary policy are the single most important cause of macroeconomic instability.
• B)investment spending will have a direct and significant effect on aggregate demand.
• C)technology and resources affect productivity, and thus the long-run growth of aggregate supply.
• D)the velocity of money is gradual and predictable, and thus is able to accommodate the long-run changes in nominal GDP.

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Definitions:

Rogers

Refers to Carl Rogers, an influential American psychologist and founder of humanistic psychology.

Existential Dread

A profound sense of unease or anxiety stemming from the contemplation of life's inherent meaninglessness or one's freedom and responsibility.

Conditions Of Worth

Conditions or standards imposed by others that an individual believes they must meet to be valued or accepted.

Unconditional Positive Regard

A practice in client-centered therapy where the therapist accepts and supports the client, whatever they say or do, without judgement.