Which of the Following Is a Criticism of Real Business

question 324

Multiple Choice

Which of the following is a criticism of real business cycle theory?

• A) Real business cycle theory fails to explain the phenomenon of economic growth.
• B) Real business cycle theory assumes that money wage rates are sticky.
• C) Real business cycle theory believes that productivity changes are caused by technology changes when in fact they are caused by changes in aggregate demand.
• D) None of the above are criticisms of real business cycle theory.

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Definitions:

Market Area

The geographic region or demographic group served by a business or organization.

Divisional Structure

An organizational layout where operations are divided into separate divisions based on product, service, market, or geographic region, each with its own set of functions.

Same Product

Identical items or services offered under different names or by different companies, often with no significant difference in function or quality.

Same Area

Referring to either a physical space where activities or operations are conducted by a group or to a field of expertise or interest that individuals share.