In real business cycle theory,the factor leading to a business cycle is

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According to real business cycle theory, fluctuations in the pace of technological change are the main factor leading to business cycles. These fluctuations affect the productivity of firms and result in changes in output and employment levels, leading to economic booms and busts. Changes in investment, the quantity of money, and unexpected changes in aggregate demand are not considered to be the primary drivers of business cycles in this theory.

In Real Business Cycle Theory,the Factor Leading to a Business