A Macroeconomic Theory That Stresses the Fact That Shifts in Potential

question 150

Multiple Choice

A macroeconomic theory that stresses the fact that shifts in potential GDP are a primary cause of fluctuations in real GDP is known as

• A)potential GDP theory.
• B)real business cycle theory.
• C)economic cycle theory.
• D)perennial growth theory.
• E)None of these

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Definitions:

Direct Search

A method of job hunting or problem solving that involves approaching potential employers or solutions directly rather than through intermediaries.

Dealers

Financial intermediaries that buy and sell securities from their own inventory, acting as principal in the transaction.

Nordic

Pertaining to the countries of Northern Europe, including Denmark, Finland, Iceland, Norway, and Sweden.

Baltic

The term Baltic often refers to the Baltic Exchange, a marketplace for the trading and settlement of physical and derivative shipping contracts.