The real business cycle theorists believe that ____ lead to changes in the growth rate of productivity.
A)technological changes
B)unexpected changes in the money supply
C)changes in fiscal and monetary policies
D)foreign competition

Question

Quizplus · Accepted Answer

Real business cycle theorists believe that changes in productivity are caused by technological changes, such as innovation, new technologies, and improvements in production methods. They argue that these changes result in fluctuations in economic activity and output growth, rather than external factors such as changes in monetary or fiscal policies, foreign competition, or shifts in consumer preferences. Therefore, choice A is the best answer.

The Real Business Cycle Theorists Believe That ____ Lead to Changes