Real Business Cycle Theory Argues That the Primary Cause of Business

question 24

Multiple Choice

Real business cycle theory argues that the primary cause of business cycles is fluctuations in

• A) preferences.
• B) government spending.
• C) the importance of externalities.
• D) total factor productivity.
• E) monetary shocks.

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Definitions:

Placebo Response

An effect experienced by a patient after a placebo treatment, which is a substance with no therapeutic effect, suggestive of an actual medical benefit.

Chinese Medicine

A holistic system of medical practice originating from China that includes herbal medicine, acupuncture, massage (Tui Na), exercise (qigong), and dietary therapy.

Conventional Medicine

A system of medicine based on the diagnosis and treatment of disease using drugs, surgery, and other traditional methods.

Meridians

Pathways in the body along which vital energy is said to flow, integral to traditional Chinese medicine practices.