In real business cycle theory, _______ are the main source of economic fluctuations.
A)unexpected changes in the full- employment quantity of labour
B)changes in the quantity of money
C)random fluctuations in productivity
D)random fluctuations in investment
E)unexpected changes in government expenditure

Question

Quizplus · Accepted Answer

Real business cycle theory asserts that random fluctuations in productivity are the primary source of economic fluctuations. This theory suggests that business cycles are the result of technology shocks, changes in production efficiency or other productivity-related factors.

In Real Business Cycle Theory, _______ Are the Main Source