According to Real Business Cycle theory, the primary cause of business cycle is :- (A) Changes in…
According to Real Business Cycle (RBC) theory, the primary cause (impulse) of business cycle fluctuations is real supply-side shocks—specifically exogenous Changes in…
Choose your answer
According to Real Business Cycle theory, the primary cause of business cycle is :-
(A) Changes in Technology
(B) Real interest rate
(C) Neutrality of Money
(D) Inter temporal substitution of labour.
Answer and explanation
Correct answer A
According to Real Business Cycle (RBC) theory, the primary cause (impulse) of business cycle fluctuations is real supply-side shocks—specifically exogenous Changes in Technology (total factor productivity shocks) (Only A is correct).
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RPSC Assistant Professor (College Education)