Real Business Cycle Theorists Maintain That Business Fluctuations Are Due

question 3

Multiple Choice

Real business cycle theorists maintain that business fluctuations are due to

• A) changes in the real money supply.
• B) inflexible wages and prices.
• C) increases and decreases in government spending.
• D) shifts in the aggregate supply curve.
• E) variability in household spending decisions on durable goods.

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Definitions:

Lactose

A sugar present in milk and dairy products, consisting of glucose and galactose units.

Transcription

The process by which the information in a strand of DNA is copied into a new molecule of messenger RNA (mRNA).

Allosteric Site

A region on an enzyme that binds to molecules in the cell, resulting in a change in the enzyme's activity; not the active site where substrate molecules bind.

Tryptophan Operon

A segment of DNA in bacteria that regulates the production of tryptophan by switching the genes responsible for its synthesis on or off.