Which of the following is the factor the creates business cycles in the real business cycle theory?
A. an unexpected change in aggregate demand
B. a change by the Fed in the growth rate of the quantity of money
C. a change in expectations about future sales and profits
D. a change in the growth rate of productivity
Answer:D
Which of the following is the factor the creates business cycles in the real business cycle theory?
A. an unexpected change in aggregate demand B. a change by the Fed in the growth rate of the quantity of money C. a change in expectations about future sales and profits D. a change in the growth rate of productivity