There Are Several Competing Models of the Business Cycle Because

question 32

Multiple Choice

There are several competing models of the business cycle because

• A) none currently captures all facets of the business cycle.
• B) they are all rooted in different philosophical traditions.
• C) different shocks need different models.
• D) they depend on the type of policy that is adopted.

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Definitions:

Responsiveness

The quality of responding quickly and positively, or the ability of an organism or system to adjust to changes in conditions.

Synchrony

The simultaneous occurrence, operation, or action of two or more things.

Timing

The selection of the precise or opportune moment to perform an action, which can greatly affect the outcome of an event.

Effortful Control

The ability to regulate one's responses, including emotional and attentional self-regulation, particularly through the exertion of willpower.