The Flaw of the Real Business Cycle Model Is That

question 8

Multiple Choice

The flaw of the Real Business Cycle model is that it

• A)assumes away output fluctuations.
• B)assumes complete wage rigidity.
• C)assumes unrealistic fooling of workers.
• D)requires procyclical wage movements and continuous labor market equilibrium.

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Definitions:

Proactive Interference

The difficulty in learning new information because of the interference from existing, previously learned information.

Retroactive Interference

A phenomenon where newly acquired information interferes with the recall of previously learned information.

New Plays

Fresh or original theatrical productions not previously performed.

Prospective Memory

The part of memory that encompasses the ability to recall planned actions or intentions for execution at a later time.