According to Real Business Cycle (RBC) Theory, the Main Source

question 57

Multiple Choice

According to real business cycle (RBC) theory, the main source of the business cycle is

• A)changes in the amount of money in the economy.
• B)waves of optimism and pessimism that cause business investment in capital goods to fluctuate.
• C)changes in the prices of oil and other resources.
• D)changes in productivity.

---

Definitions:

Liabilities

Financial obligations or debts that a company owes to others, which must be settled through the transfer of assets or services.

Assets

Resources owned or controlled by a business that are expected to produce economic value or future benefits.

Statement of Cash Flows

A financial report illustrating the total cash a company acquires through its operational endeavors and external financial sources, in addition to the cash spent on operational and investment activities over a defined period.

Balance Sheet

A financial statement that shows a company's financial position, detailing assets, liabilities, and shareholders' equity at a specific point in time.