The Real Business Cycle Theory

question 243

Multiple Choice

The real business cycle theory

• A) is an extension of the Keynesian view of business cycles.
• B) is an extension of the adaptive expectations theory of business cycles.
• C) suggests that instability is caused by shifts in the long-run aggregate supply curve.
• D) suggests that instability is caused by shifts in the aggregate demand curve caused by changing consumer confidence in the economy.

---

Definitions:

Accounts Payable

Liabilities or amounts owed by a business to its suppliers for goods and services received but not yet paid for.

Accounts Payable

Money owed by a business to its suppliers or creditors for goods and services received but not yet paid for.

Recorded Increases

Entries in financial records that reflect an increase in assets, revenues, or any account that adds to the net worth or net income of a company.

Debited

In accounting, this term indicates that an entry has been made to the left side of an account, increasing assets or expenses, or decreasing equity, liability, or revenue.