The real business cycle theory asserts that changes in __________lead to changes in__________ .
A) technology; productivity
B) animal spirits; real GDP
C) consumption expenditure; real GDP
D) the quantity of money; real GDP

Question

Quizplus · Accepted Answer

The real business cycle theory asserts that changes in technology lead to changes in productivity. These changes in productivity can then affect real GDP, employment, and other macroeconomic variables.

The Real Business Cycle Theory Asserts That Changes in __________Lead