Answer:
D) real business cycle theory.
Step-by-step explanation:
An economy in its lifetime is witness to a number of business cycles. Such business cycles include periods of economic business activity at high or even low levels.
A business cycle includes periods of economic growth, recession, troughs, and recovery. These stages can differ in length from case to case.
The real business cycle theory is the fundamental assumption that due to technology surprises, an economy is witnessing all these phases of the business cycle. Technological shocks include developments, poor weather conditions, more stringent safety rules.