A Real Business Cycle Is Associated with _____

question 80

Multiple Choice

A real business cycle is associated with _____.

• A) a shift of the short-run aggregate supply curve
• B) a change in aggregate demand
• C) a shift of the long-run aggregate supply curve
• D) a change in real income

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Definitions:

Term Structure

The relationship between interest rates or bond yields and different terms or maturities, often depicted in a curve.

Inflation

The pace at which prices for services and products in general ascend, resulting in a decrease in the value of money to buy goods.

Call Provision

A feature in a bond or other fixed-income security that allows the issuer to buy back the security before its maturity date.

Required Return

The minimum expected return by investors for taking on a certain level of risk in an investment.