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:

Abdominal Muscles

A group of muscles located in the abdomen that supports the trunk, allows movement and holds organs in place by regulating internal abdominal pressure.

Bowel Protruding

A medical condition where part of the intestine bulges through a weakened area of the abdominal wall.

Umbilical Cord

The flexible cordlike structure connecting a fetus in the womb to the placenta, transporting nutrients and oxygen from the mother and removing waste products.

Artery

A blood vessel that carries oxygenated blood away from the heart to various parts of the body.