This Theory Views Shocks to Tastes (Workers' Willingness to Work,for

question 74

Multiple Choice

This theory views shocks to tastes (workers' willingness to work,for example) and technology (productivity) as the major driving forces behind short-run fluctuations in the business cycle because these shocks lead to substantial short-run fluctuations in the natural rate of output.

• A) The natural rate hypothesis
• B) Hysteresis
• C) Real business cycle theory
• D) The Phillips curve model

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Definitions:

Stress

The body's response to any demand or challenge, which can be physical, mental, or emotional, and can have both positive and negative effects.

PTSD

Post-Traumatic Stress Disorder; a mental health condition triggered by experiencing or witnessing a terrifying event, characterized by flashbacks, nightmares, and severe anxiety.

Traumatic Event

An emotionally distressing or life-threatening experience that can have lasting effects on an individual's mental and physical well-being.

Intense Response

A strong or extreme reaction to a particular stimulus or event.