RBC Models Are Said to Reproduce Some Important Relationships Between

Multiple Choice

RBC models are said to reproduce some important relationships between variables over the U.S.business cycle. Identify one such relationship from the given options.​

A) ​Output growth is closely related to growth in investment expenditure over the business cycle.
B) ​Over the course of the business cycle, consumption spending on physical capital grow less than the investment spending on physical capital.
C) ​Over the course of the business cycle, consumption spending on physical capital grow more than the investment spending on physical capital.
D) ​Output growth is closely related to growth in labor hours over the business cycle.