A criticism of the real business cycle (RBC) theory is that
A. the money wage rate is flexible.
B. potential GDP does not vary with changes in the quantity of money.
C. productivity fluctuations might be caused by the business cycle.
D. All of the above answers are correct.
Answer:C
A criticism of the real business cycle (RBC) theory is that
A. the money wage rate is flexible. B. potential GDP does not vary with changes in the quantity of money. C. productivity fluctuations might be caused by the business cycle. D. All of the above answers are correct.