According to the Real Business Cycle Theory, What Effects Follow

question 95

Multiple Choice

According to the real business cycle theory, what effects follow from a change in productivity? I.Investment demand changes.
II.The demand for labour changes.
III.Government expenditure changes.

• A)I
• B)I and II
• C)I and III
• D)II and III
• E)I, II and III

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Definitions:

Business Judgment Rule

A legal principle protecting corporate directors and officers from liability for decisions made in good faith and in the best interest of the company.

Derivative Action

A lawsuit brought by a corporation’s shareholder on behalf of the corporation against a third party, often an insider of the corporation.

Uncertificated

Referring to securities or stocks that are not represented by a physical certificate, existing only as electronic records.

Physical

Physical pertains to anything related to the body or the material world, as opposed to mental or virtual aspects.