According to the Real Business Cycle Theory, Technological Change

question 20

Multiple Choice

According to the real business cycle theory, technological change

• A) occurs at a constant rate.
• B) happens only occasionally.
• C) happens at an uneven pace.
• D) has been rising in recent years at an increasing rate.

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Definitions:

Midpoint Method

A technique used in economics to calculate the elasticity of demand or supply between two points on a curve, which averages percentages of change in quantity and price.

Price Elasticity of Supply

The measure of how the supply quantity of a product is affected by changes in its price is known as the price elasticity of supply.

Time Horizon

Describes the length of time over which an investment, project, or policy is evaluated or expected to have an impact.

Income Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in consumers' income, holding all else constant.