Real Business Cycle Theorists Think That Most Business Cycle Fluctuations

question 33

Multiple Choice

Real business cycle theorists think that most business cycle fluctuations are caused by shocks to

• A)the production function.
• B)the size of the labour force.
• C)the real quantity of government purchases.
• D)the spending and saving decisions of consumers.

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Definitions:

Neurotics and Psychotics

Refers to individuals experiencing, respectively, mild mental health issues often related to stress and anxiety, and more severe mental disorders that significantly interfere with perception of reality.

Real World

Actual conditions and circumstances in which people live and interact, as opposed to theoretical or simulated environments.

Unconscious Influences

The effects on an individual's thoughts, feelings, or actions by processes or contents in the mind that operate without conscious awareness.

Defense Mechanisms

Psychological strategies employed by individuals to cope with reality and protect themselves from anxiety and unacceptable impulses.