The View That Business Cycles Are the Natural (Indeed Efficient)response

question 49

Multiple Choice

The view that business cycles are the natural (indeed efficient) response of the economy to changes in technology and the availability of resources is associated with the

• A) new Keynesians.
• B) traditional Keynesians.
• C) monetarists.
• D) adaptive demand siders.
• E) real business cycle theorists.

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Definitions:

Correlation Coefficient

A numerical measure that indicates the extent to which two variables fluctuate together.

Random Variables

A variable whose values depend on outcomes of a random phenomenon, with each outcome having a corresponding probability.

Coefficient of Determination

A measure used in statistical models to indicate the proportion of the variance in the dependent variable that is predictable from the independent variable(s).

Regression Line

A line of best fit through a scatter plot of data points in linear regression, representing the relationship between the independent and dependent variables.