A recent development in the RBC literature is the growing admission of the possible importance of
A)nominal variables.
B)real demand shocks.
C)favorable supply shocks.
D)changes in monetary policy.
E)technological changes.

Question

Quizplus · Accepted Answer

Recent developments in the Real Business Cycle (RBC) literature have started to acknowledge the potential significance of real demand shocks, which were traditionally downplayed in favor of supply-side factors like technological changes.

A Recent Development in the RBC Literature Is the Growing