The real business cycle (RBC) theory argues that the impact of technological change on real GDP is
A) always positive.
B) usually positive but occasionally negative.
C) always negative.
D) nonexistent.

Question

Quizplus · Accepted Answer

RBC theory suggests that technological changes generally lead to positive impacts on real GDP by increasing productivity. However, there can be instances where technological changes may disrupt certain sectors or lead to temporary negative impacts.

The Real Business Cycle (RBC) Theory Argues That the Impact