According to the real business cycle theory, which of the following would be a real disturbance to the economy?

Question

Quizplus · Accepted Answer

According to the real business cycle theory, real disturbances to the economy occur due to changes in productivity or the factors of production. An increase in the labor force would be considered a real disturbance, as it would affect the economy's ability to produce output. Changes in the required reserve ratio and reduction in the money supply would be considered monetary policy tools, which do not affect real economic factors. An increase in the price level would be considered part of the economy's normal adjustment process, rather than a disturbance.

According to the Real Business Cycle Theory, Which of the Following