Which of the following models focuses on how productivity shocks explain fluctuations in real GDP?
A)the monetarist model
B)the new classical model
C)the real business cycle model
D)the new Keynesian model

Question

Quizplus · Accepted Answer

The real business cycle model argues that fluctuations in real GDP can be explained by changes in productivity, as opposed to monetary or fiscal policy. This model emphasizes technological changes or other events that improve or harm the productivity of workers and businesses.

Which of the Following Models Focuses on How Productivity Shocks