Which of the Following Pieces of Evidence Is Most Consistent

question 293

Multiple Choice

Which of the following pieces of evidence is most consistent with the real business cycle theory?

• A) Labor supply decisions do not seem to depend on real interest rates.
• B) Real GDP and the quantity of money move closely together.
• C) Money wage rates take some time to adjust to price changes.
• D) Productivity and GDP move closely together.

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Definitions:

Net Income

The amount of earnings left over for a company after all expenses and taxes have been subtracted from revenues.

Original Sale

The initial sale of a product or service from a producer or provider to the first purchaser or consumer.

Stock Repurchase

A company's buyback of its own shares from the marketplace, reducing the amount of outstanding stock and potentially increasing share value.

Financial Analysts

Professionals who evaluate investments, analyze financial data, and assist businesses in making financial decisions and forecasts.