Which of the following would not be considered a real variable in determining the real business cycle?
A) A change in technology
B) A labor strike
C) An increase in the money supply
D) A change in tastes
E) The weather

Question

Quizplus · Accepted Answer

The increase in the money supply is not a real variable as it affects nominal variables such as prices and interest rates rather than real economic activity. The other choices are all real variables that can affect the real business cycle.

Which of the Following Would Not Be Considered a Real