Which of the Following Observations Is Not Aligned Closely with the Real

question 52

Multiple Choice

Which of the following observations is not aligned closely with the real business cycle theory?

• A)Technological changes lead to changes in the growth of productivity.
• B)Positive and negative productivity shocks are the cause of the business cycle.
• C)Wages and prices are completely flexible.
• D)Unexpected changes in the money supply causes fluctuations in real GDP.

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Definitions:

Meninx

A term related to the meninges, which are the three layers of protective tissue surrounding the brain and spinal cord.

Withdrawal Reflex

An involuntary reaction to a painful or harmful stimulus that results in the quick retraction of the body part exposed to the danger, providing a protective mechanism.

Stretch Reflex

A muscle contraction in response to stretching within the muscle, designed to maintain muscle tone and posture.

Golgi Tendon Reflex

A reflex that protects tendons and muscles from excessive tension by causing muscle relaxation when force is too great, preventing damage.