Which of the following is the factor the creates business cycles in the real business cycle theory?

Question

Quizplus · Accepted Answer

According to real business cycle theory, business cycles are caused by fluctuations in productivity growth. This theory suggests that changes in technology, labor supply, or other factors influencing production can lead to fluctuations in economic output. Therefore, option D, a change in the growth rate of productivity, is the factor that creates business cycles in the real business cycle theory. The other options may have an impact on the economy, but they are not the primary factor that causes business cycles according to this theory.

Which of the Following Is the Factor the Creates Business