According to the real business cycle theory, which of the following would be a real disturbance to the economy?

Question

Quizplus · Accepted Answer

The real business cycle theory focuses on real (supply-side) factors as the primary source of economic fluctuations. An increase in the rate at which married women participate in the labor force is a real disturbance as it would affect the economy's potential output by changing the labor force participation rate, productivity, and labor supply. The other options are monetary (demand-side) disturbances that may cause short-term fluctuations but have no long-term impact on the economy's potential output.

According to the Real Business Cycle Theory, Which of the Following