asked 212k views
0 votes
The theory that real shocks to the economy are the primary cause of business cycles is

1 Answer

3 votes
It would be the real-business-cycle theory which is the principle that mainly revolves around the idea that the macroeconomic models are one of the significant factors that are responsible for the occurrence of economic shocks. In addition, the theory is also called the RBC theory.
answered
User Josh Heald
by
7.9k points
Welcome to Qamnty — a place to ask, share, and grow together. Join our community and get real answers from real people.