With Which of the Following Statements Would a "Real Business

question 219

Multiple Choice

With which of the following statements would a "real business cycle" theorist most closely agree?

• A)"Monetary policies have the greatest impact on real GDP when they are anticipated."
• B)"Expansionary monetary policy allows the central bank to control inflation and unemployment simultaneously."
• C)"Wages adjust rapidly to changes in inflation as long as expectations are formed rationally."
• D)"Technological shocks to the economy affect only aggregate demand in the short run."

---

Definitions:

Hereditary Factors

The genetic traits and qualities passed down from parents to their offspring, influencing various inherited characteristics and predispositions.

Childbirth

The act or process of giving birth to babies, marking the culmination of pregnancy.

Mental Disorders

Health conditions characterized by alterations in thinking, mood, or behavior associated with distress or impaired functioning.

Physical Education

An educational course related to the physique of the human body, typically involving exercises and physical activities to promote health and fitness.