Which of the following would be likely to trigger a real business cycle?
A) A decrease in income tax rates
B) Expansionary monetary policy
C) A decrease in the money supply
D) A large government surplus
E) A labor strike in the steel industry

Question

Quizplus · Accepted Answer

A labor strike in the steel industry would disrupt the supply chain and cause a decrease in productivity, leading to a contraction in the economy and triggering a real business cycle. The other options (A, B, C, and D) are all unlikely to trigger a real business cycle on their own, as they involve government policy or monetary actions that are generally intended to stabilize the economy.

Which of the Following Would Be Likely to Trigger a Real