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

Question

Quizplus · Accepted Answer

According to the real business cycle theory, only real disturbances can cause changes in output and employment. Changes in labor force participation rates would be a real disturbance to the economy, whereas changes in the required reserve ratio, reduction in the money supply, or increase in the price level would not be classified as real disturbances.

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