The Real Business Cycle Theory Argues That

question 76

Multiple Choice

The real business cycle theory argues that

• A)nominal shocks are the main cause of business cycles.
• B)nominal shocks are neutral only in the long run.
• C)real shocks change output in the short run but not in the long run.
• D)real shocks are the main cause of business cycles.

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Definitions:

Delivering Nutrients

The process of transporting essential nutrients from the digestive system to the cells and tissues that need them.

Dense Irregular Collagenous Connective Tissue

A type of connective tissue characterized by collagen fibers arranged in an irregular pattern, providing strength and support to areas subjected to stress from multiple directions, such as dermis of the skin.

Granulation Tissue

New connective tissue and microscopic blood vessels that form on the surfaces of a wound during the healing process.

Epithelial Tissue

A type of tissue that lines the outer surfaces of organs and blood vessels throughout the body, as well as the inner surfaces of cavities in many internal organs.