________ would be the source of a "real" business cycle.

Question

Quizplus · Accepted Answer

Technology shocks can lead to changes in productivity and input costs, which can cause fluctuations in output and employment levels. Anticipated changes in monetary or fiscal policy may lead to adjustments in expectations, but they do not directly affect the real economy unless they impact real interest rates or government spending on goods and services. Unanticipated changes in monetary policy may have real effects, but they are not a consistent source of business cycles. Therefore, the best choice is A)Technology shocks.

________ Would Be the Source of a "Real" Business Cycle