What is the key feature that differentiates business cycle theories?
A) whether the theory was developed before or after the Great Depression.
B) whether the theory is Keynesian or non-Keynesian.
C) whether the theory also explains economic growth.
D) whether the theory explains how monetary policy works.

Question

Quizplus · Accepted Answer

The key feature that differentiates business cycle theories is whether they are Keynesian or non-Keynesian. Keynesian theories attribute fluctuations in economic activity to changes in aggregate demand, while non-Keynesian theories emphasize the role of technology shocks or other exogenous factors. The other options are not as relevant in distinguishing between different business cycle theories.

What Is the Key Feature That Differentiates Business Cycle Theories