The real business cycle model replicates the key business cycle regularities
A)with equal magnitudes of change.
B)qualitatively but not quantitatively.
C)both qualitatively and quantitatively.
D)neither qualitatively nor quantitatively.
E)quantitatively but not qualitatively.

Question

Quizplus · Accepted Answer

The real business cycle model replicates the key business cycle regularities both qualitatively and quantitatively, meaning that it accurately captures the patterns and magnitudes of fluctuations in key economic variables such as output, employment, and investment over the business cycle.

The Real Business Cycle Model Replicates the Key Business Cycle