The real business cycle (RBC) theory assets that the impact on real GDP of technological change is
A) always positive.
B) always negative.
C) usually positive but occasionally negative.
D) nonexistent.

Question

Quizplus · Accepted Answer

The RBC theory suggests that technological change usually has a positive impact on real GDP, but occasionally may have a negative impact. The theory posits that fluctuations in real economic activity are primarily caused by real shocks such as changes in technology, labor productivity, and natural resources rather than monetary shocks.

The Real Business Cycle (RBC) Theory Assets That the Impact