Which of the following is a criticism of real business cycle theory?
A) Real business cycle theory assumes that money wage rates are sticky.
B) Real business cycle theory believes that productivity changes are caused by technology changes when in fact they are caused by changes in aggregate demand.
C) Real business cycle theory fails to explain the phenomenon of economic growth.
D) None of the above are criticisms of real business cycle theory.
Correct Answer:
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Q337: If the real interest rate is 4
Q338: Today, the real wage rate is $10
Q339: In the real business cycle framework, a
Q340: According to the real business cycle theory,
Q341: According to real business cycle (RBC) theory,
Q343: By itself, an increase in aggregate demand
Q344: Which of the following theories is criticized
Q345: Critics of the real business cycle model
Q346: According to which theory of the business
Q347: Which of the following is the factor
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