Real-business-cycle theory focuses on factors affecting:
A) Aggregate demand
B) Aggregate supply
C) The velocity of money
D) Consumer spending

Question

Quizplus · Accepted Answer

Real-business-cycle theory focuses on the fluctuations in aggregate supply, such as changes in technology, capital stock, and labor productivity. It suggests that these factors are the primary drivers of economic activity and fluctuations in output, employment, and prices.

Real-Business-Cycle Theory Focuses on Factors Affecting