The Real-Business-Cycle Theorists See Aggregate Supply as the "Active" Factor

question 209

True/False

The real-business-cycle theorists see aggregate supply as the "active" factor in causing business cycles and aggregate demand as a "passive" factor.

---

Definitions:

Universal Life Insurance

A type of insurance policy that is flexible and allows one to raise or reduce premiums and the amount of coverage on one’s life.

Term Life Insurance

A type of insurance policy covering the insured for a fixed period of time (e.g., 10 or 20 years). Premiums are usually lower for a greater amount of coverage than with other types of life insurance.

Whole Life Insurance

A type of insurance policy with which, for a set annual premium, one receives life insurance coverage and, at the same time, invests one’s money.

Premiums

A designated amount of money paid at regular intervals by an individual or entity for a policy or service, especially in the context of insurance.