One problem with real business cycle theory is that:
A) it relies almost entirely on Keynes' original ideas, ignoring much of the progress made since then.
B) it treats government officials as well- meaning public servants, despite much evidence to the contrary.
C) its models downplay the importance of technological progress in the economy.
D) it defines "productivity" in a new and not very intuitive way.
E) it is more successful in explaining expansions than in explaining contractions.
Correct Answer:
Verified
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