The real business cycle is created by A. unexpected fluctuations in exports and imports B. variations in labor productivity that create fluctuations in potential GDP C. changes in the money wage rate that change aggregate supply D. fluctuations in investment that have a multiplier effect on aggregate demand
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Step 1: The real business cycle theory posits that fluctuations in the rate of technological change cause fluctuations in productivity, which in turn cause fluctuations in the level of real GDP. Show more…
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