The Real Business Cycle Theory

question 63

Multiple Choice

The real business cycle theory

• A) indicates that supply side shocks cause most business cycles.
• B) indicates that demand side shocks cause most business cycles.
• C) indicates that unanticipated changes in the money supply cause most business cycles.
• D) indicates that frequent fiscal policy actions cause most business cycles.

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Definitions:

ATP

Adenosine triphosphate, a molecule that carries energy within cells for metabolism, serving as a primary energy currency of the cell.

Electron Transport Chain

a component of the electron transport system involved in cellular respiration that generates a proton gradient to produce ATP.

ATP Molecules

Adenosine triphosphate molecules, which are the primary energy carriers in all living organisms, providing energy for most cellular processes.

Cellular Respiration

The process by which cells produce energy from carbohydrates; oxygen is consumed as a reactant along with the organic fuel.