If the workings of the economy are consistent with the real business cycle theory, then the economy will not experience economic fluctuations.

Question

Quizplus · Accepted Answer

The real business cycle theory suggests that economic fluctuations are the result of real shocks to the economy, such as changes in technology or productivity. Therefore, if the economy follows this theory, it is expected to experience economic fluctuations.

If the Workings of the Economy Are Consistent with the Real