Real business cycle theory was introduced by
A) Milton Friedman and Robert Lucas.
B) Milton Friedman and Anna Schwartz.
C) Thomas Cooley and Gary Hansen.
D) Finn Kydland and Edward Prescott.

Question

Quizplus · Accepted Answer

Real business cycle theory was introduced by Finn Kydland and Edward Prescott in the 1980s. Milton Friedman and Robert Lucas are associated with the development of new classical macroeconomics, while Friedman and Anna Schwartz are known for their research on monetary history. Thomas Cooley and Gary Hansen have also made significant contributions to business cycle theory, but are not credited with the introduction of real business cycle theory specifically.

Real Business Cycle Theory Was Introduced by