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:

Regression

A statistical process for estimating the relationships among variables, often used to predict the value of a dependent variable based on one or more independent variables.

Predict Scores

The estimated values derived from a predictive model based on independent variables.

Correlation

A statistical measure that indicates the extent to which two or more variables fluctuate together.

Regression

A statistical method used to model and analyze the relationships between dependent and independent variables to predict outcomes.