Question

What is an example of a technological fluctuation described by the real business cycle theory? O A. An earthquake ravages the San Francisco area in 1990. OB. Economies heavily based in oil see a decline in output during the 1970's. O C. Grasshopper invasions in North Dakota destroy agricultural crops in the 1870's. O D. Internet access becomes readily available to the U.S. population in the 1990's.

(not sure if the answer chosen is correct)

Answer 1

Option D

According to real business cycle theory the fluctuations in macroeconomy can be explained by technological advancements, so the advancement of internet in US helped the economy to grow fast.