Ayushi posted an Question
August 26, 2020 • 03:12 am 30 points
  • UGC NET
  • Economics

60. which of the following statement about the real business cycle theory is false? (1) it argues that trade cycle is caused by supply side factors (2) a very p

60. Which of the following statement about the Real Business Cycle theory is false? (1) It argues that trade cycle is caused by supply side factors (2) A very popular versíon of the theory has been given by Kidland and Prescott (3) It argues that increase in supply of money can cause cycles )It treats technology shock as an important factor for emergence of cycles

1 Answer(s) Answer Now
  • 0 Likes
  • 1 Comments
  • 0 Shares
  • comment-profile-img>
    Nidhi taparia Best Answer

    Option (3) is the answer. Real business cycle theory suggests that nominal or money supply related changes do not cause business cycles.

whatsapp-btn

Do You Want Better RANK in Your Exam?

Start Your Preparations with Eduncle’s FREE Study Material

  • Updated Syllabus, Paper Pattern & Full Exam Details
  • Sample Theory of Most Important Topic
  • Model Test Paper with Detailed Solutions
  • Last 5 Years Question Papers & Answers