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 cumulation 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:

Coarse Facial Features

Distinctive facial appearances that are typically broad, with a prominent forehead, nose, and jaw, often associated with certain genetic conditions.

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A clinical assessment to check for abnormalities in the thyroid gland, including its size, shape, and the presence of nodules.

Trachea

The windpipe, a large tubular passage for air that extends from the larynx to the bronchi, allowing for the movement of air in and out of the lungs.

Averted

Turned away or aside; in the context of gaze or attention, it refers to the deliberate redirection from an object or focus.