Real Business Cycle Theorists Think That Most Business Cycle Fluctuations

question 38

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 labor force.
• C)the real quantity of government purchases.
• D)the spending and saving decisions of consumers.

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Definitions:

Mobile Work Force

Employees who are equipped to work from various locations outside of a traditional office setting, facilitated by technology.

Recent Years

A term referring to the very latest past period, often without specifying the exact duration.

Defined Benefit Pension Plans

Retirement plans where an employer guarantees a specified pension amount to employees based on salary history and length of service.

Defined Contribution Plans

Retirement savings plans where the amount of the retirement benefits is determined by the contributions made by the employee and/or the employer.