CFA Practice Question

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CFA Practice Question

According to the real business cycle theory, the impulse that leads to business cycles is ______.

A. unexpected changes in aggregate demand and/or fluctuations in business confidence
B. fluctuations in the growth rate of the quantity of money
C. changes in the growth rate of productivity resulting from technological change
Correct Answer: C

User Contributed Comments 1

User Comment
YOUCANDOIT A (Keynesian/new classical/new keynesian)
B (Monetarist)
both are 'mainstream theories of business cycles'
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