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Real Business Cycle Theory Explains Cyclical Fluctuations in Terms of

Question 110

Multiple Choice

Real business cycle theory explains cyclical fluctuations in terms of


A) fluctuation in real aggregate demand.
B) fluctuations in aggregate supply caused by technological or structural changes in the economy that take place over a number of months.
C) fluctuations in real output causing changes in expectations.
D) fluctuations in the money supply caused by banks expanding credit in anticipation of real increases in output and hence demand.
E) the effects of changes in rational expectations on real output.

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