Which of the Following Is True of Real Business­cycle Models?​

question 1

Multiple Choice

Which of the following is true of real business­cycle models?​

• A)According to real business-cycle models the demand shocks are responsible for the business cycles.
• B)According to real business-cycle models government intervention is responsible for business cycles.
• C)According to real business-cycle models fluctuations in total factor productivity are responsible for business cycles.
• D)​According to real business­cycle models erratic monetary policies are responsible for business cycles.

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Definitions:

Value

The importance, worth, or usefulness of something, typically measured in monetary terms or significance.

Stocks

Shares of ownership in a company, representing a claim on the company's earnings and assets.

Bonds

Fixed-income instruments that represent a loan made by an investor to a borrower, usually corporate or governmental, which pays back the face value at maturity, along with regular interest payments.

Mutual Funds

Investment programs funded by shareholders that trade in diversified holdings and are professionally managed.