Real Business Cycle Theory Argues That

question 253

Multiple Choice

Real business cycle theory argues that:

• A) changes in inventories are the cause of the business cycle.
• B) fluctuations in the rate of growth of total factor productivity cause the business cycle.
• C) aggregate demand is more important than aggregate supply in identifying the causes of the business cycle.
• D) changes in the money supply are the primary cause of the business cycle.

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Definitions:

Growth Motivation

An internal drive to achieve personal improvement, learn new skills, and seek out new challenges.

Achievement Motivation

The drive or desire to accomplish goals, excel, and achieve competence and mastery in tasks.

Creativity

The ability to generate new ideas, alternatives, or possibilities that may be useful in solving problems, communicating with others, and entertaining.

Originality

The quality of being novel or unique, especially in the context of creative or innovative thinking.