Real business cycle theory explains the business cycle as the result of
A. excess growth of the quantity of money.
B. unstable investment demand.
C. shocks to consumer spending habits.
D. fluctuations in productivity.
Answer:D
Real business cycle theory explains the business cycle as the result of
A. excess growth of the quantity of money. B. unstable investment demand. C. shocks to consumer spending habits. D. fluctuations in productivity.