Real Business Cycle Theory States That the Most Important Cause

question 23

Multiple Choice

Real business cycle theory states that the most important cause of business cycles is

• A)shocks to the money supply.
• B)interest rate shocks.
• C)Federal Reserve policy decisions.
• D)shocks to tastes and technology.

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Definitions:

Independent Variable

Within a study, the variable which is altered or adjusted by the investigator to see its impact on the dependent variable.

Dependent Variable

The dependent variable is the variable being tested and measured in a scientific experiment, which is expected to change as a result of variations in the independent variable.

Anecdotal Evidence

Information derived from personal accounts, observations, or stories rather than from scientific analysis or hard data.

Statistical Evidence

Information derived from statistical procedures that is used to support or refute an assertion, hypothesis, or claim.