Real business cycle (RBC) theory predicts that the main source of economic fluctuations is
A. sticky money wage rates.
B. rational expectations based on complete information.
C. changes in the growth rate of productivity.
D. None of the above answers is correct.
Answer:C
Real business cycle (RBC) theory predicts that the main source of economic fluctuations is
A. sticky money wage rates. B. rational expectations based on complete information. C. changes in the growth rate of productivity. D. None of the above answers is correct.