The first model to introduce a technology shock was the Solow real business cycle model.

Name: The first model to introduce a technology shock was the Solow real business cycle model.
Brand: Quizplus
Rating: 4.8 (47 reviews)

Question

Quizplus · Accepted Answer

The first model to introduce a technology shock was not the Solow model but the Real Business Cycle (RBC) model developed by Kydland and Prescott. The Solow model focuses on long-term economic growth and does not incorporate technology shocks as a mechanism for short-term fluctuations.

The First Model to Introduce a Technology Shock Was the Solow