Critics of the real business cycle theory claim that
A. both real and nominal variables change during the business cycle.
B. the intertemporal substitution effect is too weak to account for changes in labor supply.
C. changes in technology cannot cause economic growth.
D. Both answers B and C are correct.
Answer:B
Critics of the real business cycle theory claim that
A. both real and nominal variables change during the business cycle. B. the intertemporal substitution effect is too weak to account for changes in labor supply. C. changes in technology cannot cause economic growth. D. Both answers B and C are correct.