Which of the Following Holds That Business Cycles Are Primarily

question 218

Multiple Choice

Which of the following holds that business cycles are primarily due to changes in technology and does not invoke any monetary or demand-side forces?

• A)the real business cycle theory
• B)the efficiency wage theory
• C)rational expectations hypothesis
• D)Keynesian economics

---

Definitions:

Midpoint Method

A technique used in economics for calculating elasticity by averaging the starting and ending prices and quantities.

Cross-Price Elasticity

Measure of how the quantity demanded of one good responds to a change in the price of another good.

Positive

Affirmative, constructive, or based on factual data; often used in reference to positive statements in economics which describe the world as it is, rather than how it should be.

Good Y

A general term used to represent a specific product or commodity in economic models or discussions.