One Problem with Real Business Cycle Theory Is That

question 9

Multiple Choice

One problem with real business cycle theory is that

• A)it is more successful in explaining expansions than in explaining contractions.
• B)it relies almost entirely on Keynes' original ideas, ignoring much of the progress made since then.
• C)it treats government officials as well-meaning public servants, despite much evidence to the contrary.
• D)it defines "productivity" in a new and not very intuitive way.
• E) its models downplay the importance of technological progress in the economy.

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Definitions:

Qualitative Data Sets

Qualitative data sets comprise non-numeric data used in research to describe attributes, properties, and characteristics, often gathered through interviews, observations, and textual analysis.

Themes

Central topics, subjects, or ideas that are recurrently explored in various forms of art, literature, music, or discussion, providing a deeper understanding or interpretation of the content.

Sampling Weights

Statistical adjustments applied to samples to account for unequal probabilities of selection due to the sampling design, ensuring representativeness.

Echo Effect

The echo effect describes a phenomenon where ideas, information, or beliefs are amplified and reinforced within a closed system or group, leading to a narrowed perspective.