Real Business Cycle Theory Emphasizes the Role of

question 71

Multiple Choice

Real business cycle theory emphasizes the role of

• A) demand shocks as a cause of economic fluctuations.
• B) technology shocks as a cause of economic fluctuations.
• C) shocks to the money supply as a cause of economic fluctuations.
• D) government spending as a cause of economic fluctuations.

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Definitions:

Efficient Frontier

In finance, a set of optimal portfolios that offer the highest expected return for a given level of risk or the lowest risk for a given level of expected return.

Responsiveness

The ability of an organization or system to quickly react to changes or needs within its environment or among its stakeholders.

Supply Chain

The network of all the individuals, organizations, resources, activities and technology involved in the creation and sale of a product, from the delivery of source materials from the supplier to the manufacturer, and eventually to the end user.

Replenishment Lead Time

The interval between the placement of an order and its delivery, significant in inventory management and planning.