The Real Business Cycle Theory

question 243

Multiple Choice

The real business cycle theory

• A) is an extension of the Keynesian view of business cycles.
• B) is an extension of the adaptive expectations theory of business cycles.
• C) suggests that instability is caused by shifts in the long-run aggregate supply curve.
• D) suggests that instability is caused by shifts in the aggregate demand curve caused by changing consumer confidence in the economy.

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Definitions:

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Methods that incorporate modern technology and research to increase the quantity and quality of agricultural products.

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The process by which the economic well-being and quality of life of a nation, region, or local community are improved, typically measured by increases in per capita income, employment, and other indicators of economic health.

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The process of transferring ownership of a business, enterprise, agency, public service, or public property from the government to private individuals or organizations.