Millionaire Mode

Real Business Cycle Theory

Question 1 of 15

What is the central idea behind Real Business Cycle Theory?

  1. Economic fluctuations are primarily driven by real factors, such as technological shocks and changes in preferences.
  2. Economic fluctuations are caused by monetary shocks and changes in government spending.
  3. Economic fluctuations are the result of irrational behavior by consumers and firms.
  4. Economic fluctuations are caused by changes in the money supply.

Prize Money

15₹7 Crores
14₹1 Crore
13₹50,00,000
12₹25,00,000
11₹12,50,000
10₹6,40,000
9₹3,20,000
8₹1,60,000
7₹80,000
6₹40,000
5₹20,000
4₹10,000
3₹5,000
2₹2,000
1₹1,000