The Real Business Cycle Theory Places Little Emphasis on Shocks

question 272

True/False

The real business cycle theory places little emphasis on shocks to technology.

---

Definitions:

Social Exclusion

A process through which individuals or groups are systematically blocked from various rights, opportunities, and resources that are normally available to members of society and which are key to social integration.

Self-Fulfilling Prophecy

A situation where a belief or expectation, whether accurate or not, results in behavior that makes the initially anticipated outcome come to pass.

Streaming Outcomes

The results or effects of distributing digital content, especially video or audio, over the internet to a dispersed audience.

Flynn Effect

The observed increase in IQ scores over time, suggesting that population-level intelligence is rising across generations.