Real Business Cycle Theorists Think That Most Business Cycle Fluctuations

question 33

Multiple Choice

Real business cycle theorists think that most business cycle fluctuations are caused by shocks to

• A)the production function.
• B)the size of the labour force.
• C)the real quantity of government purchases.
• D)the spending and saving decisions of consumers.

---

Definitions:

Policy Arena

The sphere or context within which policy debates, decision-making, and implementation occur, involving various stakeholders like governments, organizations, and the public.

Government Funding

Financial resources provided by the government for a specific purpose, such as research, project development, or to support a non-profit organization.

Self-actualized

The accomplishment or attainment of an individual's abilities and potentials, viewed as an innate desire or requirement in all people.

Motives

Internal states that prompt goal-directed behavior, driving individuals to fulfill their needs and desires.