Real business cycle theory shows the business cycle as
A) upward and downward movements in the economy's actual output which, in turn, affects potential output.
B) upward movements in the economy's potential output which, in turn, affects actual output.
C) upward and downward movements in the economy's potential output which, in turn, affects actual output.
D) downward movements in the economy's potential output which, in turn, affects actual output.
Correct Answer:
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