According to the Real Business Cycle (RBC) Theory, During a Recession

question 405

Multiple Choice

According to the real business cycle (RBC) theory, during a recession the demand for labor ________ and the supply of labor ________.

• A) increases; decreases
• B) decreases; does not change
• C) does not change; decreases
• D) decreases; decreases

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Definitions:

LMX

Leader-Member Exchange; a theory proposing that leaders develop different kinds of relationships with various members of their team, which can affect the team's dynamics and performance.

Cultures

The cumulative deposit of knowledge, experience, beliefs, values, attitudes, meanings, hierarchies, religion, notions of time, roles, spatial relations, concepts of the universe, and material objects and possessions acquired by a group of people in the course of generations through individual and group striving.

Transactional Leadership

A leadership style focused on routine, structure, and rewards to manage followers, emphasizing clear transactions between the leader and the followers.

Social Exchange Theory

A theoretical framework suggesting that social behavior is the result of an exchange process, aiming to maximize benefits and minimize costs.