According to Real Business Cycle Theory, the Primary Causes of Business

question 47

Multiple Choice

According to real business cycle theory, the primary causes of business cycles are

• A)shocks to aggregate demand.
• B)monetary factors.
• C)technology shocks.
• D)waves of self-fulfilling optimism and pessimism.
• E)fiscal shocks.

---

Definitions:

Primary Succession

is the process of ecosystem development or recovery on a site where no biological community previously existed, such as on bare rock or lava flows.

Facilitation

The process by which certain living organisms make an environment more suitable for other organisms to inhabit, often leading to changes in the community composition.

Ecosystem

A biological community of interacting organisms and their physical environment, functioning as a system through nutrient cycles and energy flows.

Immature Ecosystems

Ecosystems in the early stages of development, which have yet to reach a stable climax community and are characterized by rapid changes in species composition and structure.