Real Business Cycle Theorists Take the Comovement of Aggregate Output

question 70

Multiple Choice

Real business cycle theorists take the comovement of aggregate output and Solow residuals as strong confirmation that economic fluctuations are caused by ________.

• A)changes in aggregate demand
• B)changes in the money supply
• C)changes in the rate of inflation
• D)productivity shocks

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Definitions:

Just Noticeable Difference

The smallest change in the intensity of a stimulus required to produce a detectable difference in the sensory perception.

Absolute Threshold

The minimum intensity of a stimulus at which it can be detected by an individual at least 50% of the time.

Perfume Diffused

The process of dispersing perfume particles into the air to create a pleasant aroma in the environment.

Watch

A portable timepiece designed to be worn on the wrist or carried, used to measure and display time.