Two Business Cycle Facts That Are Less Easily Explained by the Real

question 59

Multiple Choice

Two business cycle facts that are less easily explained by the real business cycle are that

• A)the nominal money supply is procyclical and leads the business cycle.
• B)the nominal money supply is procyclical and is a leading indicator.
• C)the nominal money supply is procyclical and is coincident with the business cycle.
• D)the nominal money supply is procyclical and lags the business cycle.
• E)money and prices are both acyclical.

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Definitions:

Capillary Refill

A quick test to assess blood circulation where pressure is applied to a nail or skin to see how fast color returns, indicating capillary efficiency.

Immediate Memory

The capacity to hold a small amount of information in mind in an active, readily available state for a short period.

Adduction

The movement of a body part toward the central axis of the body.

Abduction

The movement of a limb or body part away from the midline of the body or away from another body part.