In the real business cycle theory,during a period when output is falling,

Question

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In the real business cycle theory, during a period when output is falling, it is typically assumed that workers are voluntarily giving up their jobs due to lower wages or less desirable working conditions (A), the quantity supplied of labor is falling because workers choose to supply less labor at the prevailing wages (B), and aggregate productivity must be falling because real business cycle theory attributes fluctuations in economic activity to changes in technology and productivity (C). Thus, all of the given statements (A, B, and C) are considered to be true within the context of real business cycle theory, making D the correct answer.

In the Real Business Cycle Theory,during a Period When Output