Real Business Cycle Theory Explains Variations in Prices,employment and Output

question 4

Multiple Choice

Real business cycle theory explains variations in prices,employment and output by focusing on

• A)changes in real variables such as demand and supply shocks,technological changes,and shifts in the composition of the labour force.
• B)anticipated monetary policies enacted by the Bank of Canada.
• C)the effects of the Phillips curve.
• D)anticipated changes fiscal policy enacted by the government.

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Definitions:

Financial Literacy

The ability to understand and use various financial skills, including personal financial management, budgeting, and investing.

Whistle-Blowers

Individuals who expose illegal practices or unethical conduct within an organization to the authorities or the public.

Antitrust Laws

Laws designed to promote fair competition for the benefit of consumers, preventing monopolies and other activities that could restrict trade.

Competitive Strategies

Approaches adopted by businesses to gain a competitive edge over rivals, including differentiation, cost leadership, and focus strategies.