This Theory Views Shocks to Tastes (Workers' Willingness to Work,for

question 74

Multiple Choice

This theory views shocks to tastes (workers' willingness to work,for example) and technology (productivity) as the major driving forces behind short-run fluctuations in the business cycle because these shocks lead to substantial short-run fluctuations in the natural rate of output.

• A) The natural rate hypothesis
• B) Hysteresis
• C) Real business cycle theory
• D) The Phillips curve model

---

Definitions:

Osmotic Pressure

The pressure required to prevent the flow of a pure solvent across a semipermeable membrane into a solution, related to the concentration of solutes.

Nephron Loop

Part of the kidney nephron extending from the proximal to the distal convoluted tubule, crucial in concentrating urine and reabsorbing water and salts.

Proximal Tubule

A portion of the nephron in the kidney which first processes the filtrates from the blood plasma, reabsorbing water, ions, and all organic nutrients.