Which of the Business Cycle Facts Below Cannot Be Explained

question 38

Multiple Choice

Which of the business cycle facts below cannot be explained unquestionably by the Real Business Cycle model?

• A)The average labour productivity is procyclical.
• B)Employment is procyclical.
• C)Inflation slows down during or immediately after recession.
• D)Recurrent fluctuations in aggregate output.

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Definitions:

Self-Esteem

An individual's overall subjective emotional evaluation of their own worth or abilities.

Distraction

A condition of having one's attention diverted from a task or focus, often due to external stimuli or internal thoughts, leading to decreased productivity or awareness.

Defensive Behavior

Actions or reactions aimed at protecting oneself from criticism, harm, or blame, often manifesting through verbal or non-verbal means.

Irrelevant

Not connected with or relevant to something.