CFA Practice Question

There are 539 practice questions for this study session.

CFA Practice Question

Which statement is false based on the real business cycle theory?
A. A period of rapid productivity growth brings an expansion and a decrease in productivity triggers a recession.
B. Productivity shocks are as likely to be caused by changes in aggregate demand as by technological change.
C. Real business cycle theory regards random fluctuations in productivity as the main source of economic fluctuations.
Explanation: This is actually one of the main criticisms of RBC theory.

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sevywonder RBC in a nutshell: tech!
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