In the Real Business Cycle

question 4

Multiple Choice

In the real business cycle,

• A)employment, labour productivity and real wages are procyclical.
• B)employment, labour productivity and real wages are countercyclical.
• C)employment, inflation are procyclical, but real wages are countercyclical.
• D)unemployment, labour productivity and real wages are procyclical.

---

Definitions:

Out of Pocket Expense

Expenses that are paid directly by an individual and not reimbursed, often related to healthcare, business, or personal costs.

Self-Employment Tax

The tax covering Social Security and Medicare for individuals who work for themselves, essentially the self-employed version of FICA taxes.

Schedule C

A section of the IRS Form 1040 that allows self-employed individuals to report their business income and expenses.

Form SE

A tax form used by self-employed individuals in the United States to calculate the tax due on their net earnings from self-employment.