An Important Critique of Real Business Cycle Theory Is the Belief

Multiple Choice

An important critique of real business cycle theory is the belief that cyclical movements in total factor productivity

A) rarely occur.
B) may, in part, be an artifact of measurement error.
C) lead to imperceptible changes in labour demand.
D) are too small to account for the size of fluctuations in real GDP.
E) does not explain the overall fluctuations in the business cycle.