Which of the Following Statements Is True About Causes of Business

question 21

Multiple Choice

Which of the following statements is true about causes of business cycle fluctuations?

• A)Economists all agree that supply shocks are the cause of most business cycle fluctuations.
• B)Economists all agree that productivity shocks are the cause of most business cycle changes.
• C)Economists all agree that monetary changes are primarily responsible for business cycle fluctuations.
• D)There are a wide range of theories as to the underlying causes of business cycle movements.

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Definitions:

Absolute Advantage

A condition in which a country, individual, or company can produce a good or service at a lower cost per unit than other competitors.

Domestic Advantage

The benefit or edge that a country or company holds over others in the domestic market, often due to localization, resources, or specialization.

Multinational Strategy

A plan, used by international companies that involves customizing products, promotion, and distribution according to cultural, technological, regional, and national differences.