The Major Criticism of Real Business Cycle Models Is

question 87

Multiple Choice

The major criticism of real business cycle models is

• A)negative technology shocks are uncommon and can't explain all business cycle fluctuations.
• B)positive technology shocks actually push real GDP above the economy's potential GDP.
• C)negative technology shocks actually push real GDP below the economy's potential GDP
• D)this model relies too heavily on monetary explanations for fluctuations in real GDP.

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Definitions:

Hippie Commune

A community, typically formed during the 1960s and 1970s, where individuals shared common interests, values, and lifestyles, often focusing on peace, love, and communal living.

Retreatism

A response to strain wherein individuals reject both societal goals and the means to achieve them, often leading to withdrawal from social norms and activities.

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The act of stealthily taking goods from a retail establishment without paying for them.

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The process of creating new ideas, products, or methods that bring about significant change or improvements.