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:

DSM-IV

The fourth version of the Diagnostic and Statistical Manual of Mental Disorders serves as a reference for identifying mental health conditions.

Axis V

Axis V refers to the Global Assessment of Functioning scale, historically used in psychiatric diagnoses to rate an individual's overall psychological, social, and occupational functioning.

Axis I

A classification in earlier versions of the Diagnostic and Statistical Manual of Mental Disorders (DSM) that includes clinical disorders and other conditions that may be a focus of clinical attention.

Personality Disorders

Mental health conditions characterized by enduring patterns of behavior, cognition, and inner experience that deviate from the expectations of the culture.