According to real business cycle theory
A) monetary policy is driving business cycles.
B) Federal Reserve actions need to be watched closely.
C) technology shocks have a major role in business cycles.
D) cash-in-advance is necessarily to explain business cycles.

Question

Quizplus · Accepted Answer

Real business cycle theory emphasizes technology shocks as the main driver of business cycles, rather than monetary policy or other factors.

According to Real Business Cycle Theory