Real Business Cycle Theorists Take the Comovement of Aggregate Output

question 70

Multiple Choice

Real business cycle theorists take the comovement of aggregate output and Solow residuals as strong confirmation that economic fluctuations are caused by ________.

• A)changes in aggregate demand
• B)changes in the money supply
• C)changes in the rate of inflation
• D)productivity shocks

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Definitions:

Direct Investments

Investments made directly into a company or project, rather than through securities, stocks, or other indirect means.

Terrorist Activity

Violent acts intended to create fear, perpetrated for a religious, political, or ideological goal, often targeting civilians.

Political Risk

The risk of losing money due to changes in a country's political environment or government policies that would affect investments negatively.

Transaction Gains

Refers to the profits realized from the buying and selling of assets or securities within a specific timeframe.