According to the Real Business Cycle Theory, an Adverse Change

Multiple Choice

According to the real business cycle theory, an adverse change in technology:

A) increases the productivity of labor, which causes real wages and output to increase.
B) decreases the productivity of labor, which causes real wages and output to increase.
C) decreases the productivity of labor, which causes real wages to fall and output to decline.
D) increases the productivity of labor, which causes real wages and output to decline.