According to real business cycle theorists, each of the following is an explanation as to why production decreases except

Question

Quizplus · Accepted Answer

Real business cycle theorists attribute fluctuations in economic activity to real factors such as technology changes and resource availability, not to monetary or fiscal policies. Therefore, a contractionary fiscal policy is not considered a direct cause for a decrease in production according to this theory.

According to Real Business Cycle Theorists, Each of the Following