According to the Real Business Cycle Theory, During a Recession

question 49

Multiple Choice

According to the real business cycle theory, during a recession the demand for labour ________ and the supply of labour ________.

• A)increases; decreases
• B)decreases; does not change
• C)does not change; decreases
• D)decreases; decreases
• E)decreases; increases

---

Definitions:

Sequential

Pertaining to or characterized by a sequence, where one element follows another in a specific order.

Cohort Effect

A phenomenon in which research outcomes are influenced by the characteristics of the cohort being studied, often related to the group's unique social or historical context.

Eras

Distinct periods of time identified by specific characteristics, events, or developments.

Ages

A term referring to the different stages of life or periods in history, often used in the study of human development or demographics.