According to the real business cycle theory, what is the principal cause of business cycle fluctuations?
What will be an ideal response?
According to the real business cycle theory, real shocks, especially productivity shocks, are the principal cause of business cycle fluctuations in aggregate economic activity.
Economics
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When there is a negative externality in a market, too much of the good is produced
Indicate whether the statement is true or false
Economics
Which of the following is TRUE regarding perfect competition? I. The firms are price takers. II. Marginal revenue equals the price of the product. III. Established firms have no advantage over new firms
A) I and II B) II and III C) I, II and III D) I only
Economics