Which of the Following Is NOT One of the Criticisms

question 311

Multiple Choice

Which of the following is NOT one of the criticisms of real business cycle theory?

• A) The money wage rate is sticky in the short run.
• B) Inter-temporal substitution is too weak.
• C) Productivity fluctuations are the result of the business cycle, not the cause of business cycles.
• D) The theory is built on weak microeconomic foundations.

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Definitions:

FOB Shipping Point

is a term used in shipping, where the buyer becomes responsible for goods once they are shipped, and must pay for the transport costs.

Credit Memo

A document issued by a seller to a buyer, reducing the amount the buyer owes to the seller under previous transactions, often due to a return or refund.

Perpetual Inventory System

A technique in inventory management accounting that captures sales or purchases right away using computerized systems for point-of-sale and software for enterprise asset management.

Credit Card Fees

Credit card fees are charges levied by credit card companies for the processing of transactions, maintenance of accounts, or penalties for late payments.