The factor that leads to business cycle events within real business cycle theory is
A. changes in growth rate in productivity.
B. changes in the growth rate in the quantity of money.
C. adverse shocks to international trade.
D. changes in expected future sales and profits of firms.
Answer:A
The factor that leads to business cycle events within real business cycle theory is
A. changes in growth rate in productivity. B. changes in the growth rate in the quantity of money. C. adverse shocks to international trade. D. changes in expected future sales and profits of firms.