Voltage (emf) can be induced in a loop by two primary mechanisms according to Faraday's Law of Induction:
1. Transformer EMF (or Statically Induced EMF): This is due to a time-varying magnetic flux (\(\Phi_B\)) passing through a stationary loop. \( \mathcal{E}_{transformer} = -\frac{d\Phi_B}{dt} \) where the change in flux is due to a time-varying magnetic field \(B(t)\) through a fixed area.
2. Motional EMF (or Dynamically Induced EMF): This is due to the motion of a conductor (forming the loop or part of it) in a magnetic field, such_that the magnetic flux linkage changes due to the motion changing the effective area or orientation. For a conductor of length L moving with velocity \(\vec{v}\) in a field \(\vec{B}\), \( \mathcal{E}_{motional} = \oint (\vec{v} \times \vec{B}) \cdot d\vec{l} \).
In this problem:
The magnetic field itself is time-varying: \(B(t) = B_0 \sin(\omega t)\). This time-varying field passing through the loop (even if it were stationary but had some area perpendicular to B) would induce a transformer EMF.
The loop is also rotating about the y-axis. If the loop has an area and its orientation with respect to the z-directed magnetic field changes due to this rotation, then the magnetic flux through the loop will change due to this motion, inducing a motional EMF. For example, if the loop is in the xy-plane initially, as it rotates about y-axis, the angle between its area vector and the B-field (in z-dir) changes.
Since both conditions are present (time-varying magnetic field AND motion of the loop that changes its orientation relative to the field, thus changing flux linkage due to motion), the total induced voltage will be a combination of transformer EMF and motional EMF.
The general form of Faraday's law encompassing both is \( \mathcal{E} = -\frac{d\Phi_B}{dt} \), where the change in flux \(d\Phi_B/dt\) can arise from a time-varying field, a time-varying area, or a time-varying orientation. The term \(d\Phi_B/dt\) can be expanded to show both contributions explicitly in some formulations.
Therefore, the induced voltage is due to a combination of motional and transformer emf.
\[ \boxed{\text{Combination of motional and transformer emf}} \]