A Government Policy That Is Consistent with Real Business Cycle

question 40

Multiple Choice

A government policy that is consistent with real business cycle theory would be for

• A)the monetary authority to expand and contract the nominal money supply in response to shocks to total factor productivity.
• B)government to smooth out tax distortions over time.
• C)government to vary its spending in response to shocks to total factor productivity.
• D)government to vary its spending and taxation decreases in response to shocks that affect the price level.
• E)government to vary its lump-sum tax collections in response to changes in total factor productivity.

---

Definitions:

Self-Esteem

Someone's internal judgment regarding their own significance or value.

Gender Identity

It refers to an individual's personal sense of their own gender, whether it be male, female, a blend of both, or neither, and can correlate with or differ from the sex they were assigned at birth.

Protective Antibodies

Proteins produced by the immune system that recognize and neutralize foreign substances like bacteria and viruses.

Teenage Girls

Females in the age group typically ranging from 13 to 19 years old, undergoing significant physical, psychological, and social changes.