Real Business Cycles Could Be a Result of

question 66

Multiple Choice

Real business cycles could be a result of

• A)discretionary fiscal policy.
• B)abrupt changes in monetary policy.
• C)increases in the budget deficit and national debt.
• D)shocks to the aggregate supply side of the economy.

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Definitions:

Marginal Revenue

The extra revenue generated by the sale of an additional unit of a product or service.

Marginal Cost

The cost of producing one additional unit of a good or service.

Marginal Cost

The expense associated with creating an extra unit of a product or service.

Output

The quantity of goods or services produced in a given time period by a firm, industry, or country.