Real business cycle theorists take the comovement of aggregate output and Solow residuals as strong confirmation that economic fluctuations are caused by ________

Refer to the above figure. Which of the following points indicates an inefficient use of resources?

A) a B) d C) e D) More information is needed to answer the question.

According to the real business cycle theory, business cycle contractions are generally caused by

A) the self-interest of politicians. B) decreases in business investment. C) decreases in the growth rate of the money supply. D) decreases in the economy's capacity to produce. E) all of the above