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An example of a positive real business cycle shock would be .. - a sudden Increase in the money supply ma sudden decline in tErratic government government behavior can lead to a negative real shock by ... Increasing the perceived risk of Investing orReal Business Cycle Theory is bad at explaining - ... the impact of a sudden Increase in the productivity of workers. ... the

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Answer #1

a) "C"

A new edible crop will be a postive business cycle shock.

b) "A"

Increase in the perceived risk in investment and saving.

c) "B"

An impact of a sudden shock in the input prices.

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