According to the ________ theory, technological change can be so rapid that some existing capital becomes obsolete and ________.
A) real business cycle; aggregate demand increases
B) new classical; productivity falls
C) new classical; aggregate demand increases
D) real business cycle; productivity falls

Question

Quizplus · Accepted Answer

The real business cycle theory suggests that technological changes can lead to rapid shifts in productivity, causing some existing capital to become obsolete and productivity to fall.

According to the ________ Theory, Technological Change Can Be So