In the Real-Business-Cycle Theory

question 82

Multiple Choice

In the real-business-cycle theory,

• A) declines in real output cause declines in the money supply and thus aggregate demand.
• B) decreases in long-run aggregate supply are fully anticipated and therefore do not reduce real output.
• C) technology is constant.
• D) economic instability results from inappropriate monetary policy.

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Definitions:

Error

A mistake or inaccuracy in something that is not correct.

Drain

To remove liquid from an area or object, often used in contexts of plumbing or natural water movement.

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A specialist with specific knowledge, experience, or skills in a particular field, recruited to provide testimony or opinion in legal proceedings.

Standard Of Care

The degree of care and diligence expected from a person or entity in a specific situation, often used in legal contexts to establish negligence.