Which of the Following Does NOT Explain Why the Official

question 280

Multiple Choice

Which of the following does NOT explain why the official chronology of past U.S. business cycles maintained by the National Bureau of Economic Research goes back only to 1854?

• A)The further back in time you go, the fewer economic data are available.
• B)There may not have been business cycles in the modern sense much before 1854.
• C)Before 1854 the U.S. economy was mostly agricultural, and therefore the short-run aggregate supply curve was probably close to vertical.
• D)There were no banks before 1854.

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Definitions:

Diathesis-Stress Perspective

A psychological theory that explains behavior as a result of predispositional vulnerabilities together with stress from life experiences.

Systems Theory

A theory proposing that multiple interacting factors generate all behaviour, and that the effects of these factors are bidirectional; that is, the influence of each factor on another changes the other factors, which in turn then influence the original factor. The overall effect of these influences is said to be greater than the sum of the influence of each of the factors.

Biopsychosocial Model

A holistic approach to health and illness that considers biological, psychological, and social factors.