One Problem with Real Business Cycle Theory Is That

question 9

Multiple Choice

One problem with real business cycle theory is that

• A)it is more successful in explaining expansions than in explaining contractions.
• B)it relies almost entirely on Keynes' original ideas, ignoring much of the progress made since then.
• C)it treats government officials as well-meaning public servants, despite much evidence to the contrary.
• D)it defines "productivity" in a new and not very intuitive way.
• E) its models downplay the importance of technological progress in the economy.

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Definitions:

Item Events

Events that are fired in response to interaction with items in a GUI, such as selections or changes in state.

Graphics Object

In programming, an object that encapsulates methods for drawing shapes, text, and images to a display device or off-screen image.

drawOval

A method in the Java graphics class used to draw an oval shape based on specified dimensions and coordinates.

fillRect

In computer graphics, the "fillRect" method is used to draw and fill a rectangle with a specific color or pattern in a graphical user interface.