Real Business Cycle (RBC) Theory Predicts That the Main Source

question 307

Multiple Choice

Real business cycle (RBC) theory predicts that the main source of economic fluctuations is

• A) sticky money wage rates.
• B) rational expectations based on complete information.
• C) changes in the growth rate of productivity.
• D) None of the above answers is correct.

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Definitions:

Forecasting

The process of making predictions of the future based on past and present data.

Indicators

Measures or signals used to assess current conditions or to forecast financial or economic trends.

Indexes

Statistical composite measures that track changes in economic conditions or markets, made up of selected data points from various sources.

Forecasting

The process of making predictions about future events based on historical and current data.