According to the Real Business Cycle Theory, Technological Change

question 361

Multiple Choice

According to the real business cycle theory, technological change

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

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Definitions:

General Cognitive Ability

The overall mental capacity of an individual, including the ability to reason, plan, solve problems, think abstractly, comprehend complex ideas, learn quickly, and learn from experience.

Knowledge

Facts, information, and skills acquired through experience or education.

Information Processing

The methods by which individuals or systems gather, analyze, and interpret data to make decisions or understand the world.

Motivation

The psychological forces or factors that drive individuals to take action, pursue goals, or engage in certain behaviors.