According to Real Business Cycle Models

question 58

Multiple Choice

According to real business cycle models

• A) total real output does not change in response to changes in aggregate supply and demand; only price levels change.
• B) aggregate supply is horizontal so that fluctuations in real GDP result from changes in aggregate demand.
• C) changes in total real output vary inversely with changes in real GDP.
• D) real output cannot grow faster than the real rate of interest.
• E) real wages tend to fall when real GDP falls and rise when real GDP rises.

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Definitions:

Endolymph

The fluid of the membranous labyrinth and cochlear duct of the ear.

Sensory Receptors

Specialized cells or proteins in organisms that detect and respond to external stimuli, transmitting sensory information to the nervous system.

Efferent Neurons

Neurons that transmit action potentials from the brain or spinal cord to muscles or glands. Compare with afferent neurons.

Sonar

Sonar is a technique that uses sound propagation (usually underwater) to navigate, communicate, or detect other vessels by sending out pulses of sound and listening for echoes.