The factor leading to business cycles according to the real business cycle theory is changes in
A) the growth rate of the quantity of money.
B) technological change caused by changes in productivity.
C) productivity caused by changes in technology.
D) investment caused by changes in business confidence.

Question

Quizplus · Accepted Answer

Real business cycle theory attributes business cycles to changes in productivity, which are often driven by technological advancements.

The Factor Leading to Business Cycles According to the Real