Two Business Cycle Facts That Are Less Easily Explained by the Real

question 21

Multiple Choice

Two business cycle facts that are less easily explained by the real business cycle are that

• A) money and prices are both acyclical.
• B) the nominal money supply is procyclical and leads the business cycle.
• C) the nominal money supply is procyclical and is coincident with the business cycle.
• D) the nominal money supply is procyclical and lags the business cycle.
• E) the nominal money supply is procyclical and is a leading indicator.

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Definitions:

Alcohol

is a psychoactive substance that acts as a central nervous system depressant, often used socially for its effects on mood and behavior.

Alcohol

A chemical compound commonly found in beverages that can alter consciousness and have effects on the body.

Stimulant

A type of drug that increases the activity of the nervous system, resulting in increased alertness, attention, and energy.

Insomnia

A sleep disorder characterized by difficulty falling asleep, staying asleep, or achieving restorative sleep, often leading to daytime sleepiness and functional impairment.