The real business cycle theory views fluctuations in productivity as the main source of business cycles.

Name: The real business cycle theory views fluctuations in productivity as the main source of business cycles.
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Question

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Real Business Cycle (RBC) theory posits that business cycle fluctuations are primarily the result of exogenous changes in the productivity level, which are driven by technological innovations or changes in resource availability.

The Real Business Cycle Theory Views Fluctuations in Productivity as the Main