The Idea That Business Fluctuations Are Primarily Caused by Factors

question 17

Multiple Choice

The idea that business fluctuations are primarily caused by factors affecting aggregate supply rather than aggregate demand is a central tenet of

• A)efficiency wage theory.
• B)real-business-cycle theory.
• C)mainstream economics.
• D)monetarism.

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Definitions:

Rejection Region

The range of values in hypothesis testing that, if the test statistic falls within, leads to the rejection of the null hypothesis.

F-distribution

A probability distribution used in analysis of variance (ANOVA), assessing whether the means of various groups are equal.

Upper Tail

The portion of a distribution of values that lies above the upper limit of the central part of the distribution.

Area

A measure of the extent of a two-dimensional surface or shape, expressed in square units.