The Major Criticism of Real Business Cycle Models Is

question 93

Multiple Choice

The major criticism of real business cycle models is

• A)negative technology shocks are uncommon and can't explain all business cycle fluctuations.
• B)positive technology shocks actually push real GDP above the economy's potential GDP.
• C)negative technology shocks actually push real GDP below the economy's potential GDP.
• D)this model relies too heavily on monetary explanations for fluctuations in real GDP.
• E)this model does not offer an explanation of how shocks are transmitted from one sector to another.