Advocates of real business cycle theories argue that all of the following could cause a recession except

Question

Quizplus · Accepted Answer

Real business cycle theories focus on real (not nominal) shocks to the economy, such as technology changes, to explain economic fluctuations. A fall in consumer expectations is more related to psychological or sentiment-driven factors, not the real economic factors emphasized by real business cycle theories.

Advocates of Real Business Cycle Theories Argue That All of the Following