Which of the Following Holds That Business Cycles Are Primarily

question 218

Multiple Choice

Which of the following holds that business cycles are primarily due to changes in technology and does not invoke any monetary or demand-side forces?

• A)the real business cycle theory
• B)the efficiency wage theory
• C)rational expectations hypothesis
• D)Keynesian economics

---

Definitions:

Sales Mix

The proportion of different products or services that a company sells, affecting its overall profitability due to varying margins.

Margin Of Safety

The difference between actual sales and break-even sales, indicating the amount by which sales can drop before the business incurs a loss.

Contribution Margin Ratio

A measure of the profitability of a product, defined as the difference between the sales price and variable costs, expressed as a percentage of sales price.

Operating Income

EBIT, or earnings before interest and taxes, denotes the income a business generates from its fundamental activities.