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:

Social Terms

Concepts and vocabulary used to describe social structures, relationships, and interactions within a community or society.

Intelligence Quotient

A numerical measure of a person’s cognitive abilities relative to the average cognitive ability of their age group.

Mental Age

A measure of an individual's intellectual maturity, quantified by comparing their intellectual performance to the average performance of others in their age group.

Chronological Age

Refers to the actual age of a person measured in years from the date of birth.