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.

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Definitions:

Shaming

The act of publicly or privately making someone feel ashamed or humiliated, often as a form of punishment or control.

Social Learning Theory

A theory that suggests people learn behaviors, norms, and values through observing and imitating others.

Cultural Values

The fundamental beliefs or philosophies that are important to the people of a specific culture.

Positivist Theory

A theoretical approach in sociology and criminology that posits that human behavior, including criminality, can be studied and understood through scientific principles and methods.