Critics of the RBC Approach Argue That It's Hard to Find

question 44

Multiple Choice

Critics of the RBC approach argue that it's hard to find productivity shocks large enough to cause business cycles.What is the RBC counterargument to this criticism?

• A)Business cycles are always and everywhere a monetary phenomenon.
• B)Wars and military buildups could be considered productivity shocks.
• C)Business cycles could be caused by the accumulation of small productivity shocks.
• D)Business cycles are often caused by unobservable productivity shocks, which aren't apparent at the time they occur.

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Definitions:

Manufacturer

An individual or organization that makes goods or products from raw materials through the use of labor, machinery, and equipment.

Strategic Stakeholders

Strategic stakeholders are individuals or groups that have a significant interest or stake in the strategic outcomes and decisions of an organization, and whose support and involvement are crucial for its success.

Primary

Core or most important, often referring to the main subject of study or the central component in a system.

Organizational

Pertaining to the structure and function of an organization, including its processes, policies, and personnel.