Critics of the RBC Approach Argue That It's Hard to Find

question 44

Multiple Choice

Critics of the RBC approach argue that it's hard to find productivity shocks large enough to cause business cycles.What is the RBC counterargument to this criticism?

• A)Business cycles are always and everywhere a monetary phenomenon.
• B)Wars and military buildups could be considered productivity shocks.
• C)Business cycles could be caused by the accumulation of small productivity shocks.
• D)Business cycles are often caused by unobservable productivity shocks, which aren't apparent at the time they occur.

Grasp the concept of the need for cognition and its impact on critical and analytical thinking.

Understand how mood affects persuasion and message reception.

Comprehend how fear and positive emotions can be effectively used in persuasion.

Recognize how one-sided and two-sided messaging affects persuasion based on audience characteristics.

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Definitions:

Chronic Disease

A long-lasting condition that can be controlled but not cured, often with significant impacts on individuals' life, such as diabetes, asthma, and heart disease.

Adjustment

The process of adapting or becoming accustomed to a new situation or environment.

Dynamic

Refers to a process or system characterized by constant change, activity, or progress.

Variable

An element, feature, or factor that is liable to vary or change between individuals or within an individual over time.