According to Real Business Cycle Theory

question 44

Multiple Choice

According to real business cycle theory:

• A)a short-term trade-off exists between unemployment and inflation but not a permanent trade-off.
• B)economic fluctuations are the result of external negative and positive productivity shocks to the economy.
• C)workers and consumers incorporate the likely consequences of government policy changes into their expectations by quickly adjusting wages and prices.
• D)the economy will self-correct to the natural rate of unemployment.

---

Definitions:

Customer Feedback

Opinions, insights, or complaints provided by customers regarding their experience with a company's products or services.

Total Quality Management

A management framework that focuses on continuous improvement in all aspects of an organization's operations, emphasizing customer satisfaction.

Continuous Improvement

An ongoing effort to enhance products, services, or processes for increased quality and efficiency.

Customer Needs

The requirements and desires of consumers that a product or service should fulfill.