Economics · Real Business Cycle Theory
According to Real Business Cycle (RBC) theory, economic fluctuations are caused by real exogenous shocks. Which of the following is NOT considered a real factor in RBC models?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Sudden monetary shocks or rapid credit supply expansion✓
- 2Productivity and technology shocks
- 3Significant changes in energy prices, such as oil price shocks
- 4Unfavorable developments in the physical environment or natural disasters
Correct answer
Sudden monetary shocks or rapid credit supply expansion
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