Real Business Cycle Theory Suggests the Business Cycle Is Caused

question 257

Multiple Choice

Real business cycle theory suggests the business cycle is caused by:

• A) discretionary monetary policy.
• B) fluctuations in the rate of productivity.
• C) "animal spirits."
• D) protectionism.

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Definitions:

Variability

The quality of being subject to change or variation, often in reference to data or environmental conditions.

Ancient Greeks

A civilization belonging to a period of Greek history that lasted from the Archaic period of the 8th/6th centuries BC to 146 BC and the Roman conquest of Greece.

Polytheism

The belief in multiple gods and/or goddesses.

State Societies

Complex social structures characterized by centralized political organization, social stratification, and governance over a specific territory.