Real Business Cycle Theorists Are Critical of Monetarist Reduced-Form Evidence

question 22

Multiple Choice

Real business cycle theorists are critical of monetarist reduced-form evidence because they believe

• A)money is the most important cause of changes in aggregate demand.
• B)there is reverse causation from the business cycle to money.
• C)there is reverse causation from money to the business cycle.
• D)business cycles do not exist.

---

Definitions:

Morphological Convergence

The evolutionary phenomenon where organisms from different lineages develop similar anatomical features independently, usually due to similar environmental pressures.

Shared Ancestry

Shared Ancestry denotes the common genetic heritage found between different organisms or populations, underlining the evolutionary relationships that link different species or groups.

Comparative Morphology

The branch of biology that studies the structure, form, and variation of organisms to determine relationships and evolutionary changes.

Morphological Divergence

The evolution of different forms, structures, or appearances in organisms as a result of adaptation to different environments or ecological niches.