The Major Criticism of Real Business Cycle Models Is

question 93

Multiple Choice

The major criticism of real business cycle models is

• A)negative technology shocks are uncommon and can't explain all business cycle fluctuations.
• B)positive technology shocks actually push real GDP above the economy's potential GDP.
• C)negative technology shocks actually push real GDP below the economy's potential GDP.
• D)this model relies too heavily on monetary explanations for fluctuations in real GDP.
• E)this model does not offer an explanation of how shocks are transmitted from one sector to another.

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Definitions:

Household Chores

Routine tasks and duties performed in managing a household, including cleaning, cooking, and maintenance activities.

Social Context

The environmental and cultural circumstances that influence the understanding and interpretation of communications and behaviors.

Prescribed Roles

Socially and culturally defined expectations and duties assigned to individuals or groups, often based on their status, gender, or age.

Cohabitation Rates

The statistical measure of the number of couples living together without being legally married.