According to the Real Business Cycle Theory, Technological Change

question 138

Multiple Choice

According to the real business cycle theory, technological change

• A) is caused by changes in productivity.
• B) can initially decrease productivity.
• C) always increases productivity.
• D) never increases productivity.

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Definitions:

Per Capita Income

The average income earned per person in a given area or country, calculated by dividing the total income by the population size.

Economic Growth

An increase in the capacity of an economy to produce goods and services, compared from one period of time to another.

Life Expectancy

The average number of years a person is expected to live based on demographic factors such as current age and gender, typically derived from statistical analysis.

Literacy Rate

The percentage of people within a population who are able to read and write at a specified age.