Real business cycle theory states that the factor leading to the business cycle is changes in
A)productivity.
B)aggregate demand only.
C)animal spirits.
D)the growth rate of the quantity of money.

Question

Quizplus · Accepted Answer

Real business cycle theory attributes fluctuations in the economy to changes in productivity, which are often driven by technological innovations or changes in resource availability.

Real Business Cycle Theory States That the Factor Leading to the Business