According to the Real Business Cycle Theory, Technological Change

question 45

Multiple Choice

According to the real business cycle theory, technological change

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

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Definitions:

Explanation

A statement or account that makes something clear by describing it in more detail or revealing relevant facts or ideas.

Buffer

A temporary storage area, typically in the context of computer memory, used to hold data while it is being moved from one place to another.

Positive

Characterized by the presence rather than the absence of distinguishing features, often implying optimism or a constructive approach.

Production Delays

Occurrences that slow down the manufacturing or creation process, leading to longer times to bring a product or service to market.