Joseph Schumpeter theorized that business cycles were determined primarily by long-run waves of innovation.

Question

Quizplus · Accepted Answer

Schumpeter argued that the economy experiences long-run cycles of innovation, characterized by the introduction of new technologies and products, which drive economic growth and development. These waves of innovation are often followed by periods of stagnation and decline, as existing industries are disrupted and new ones emerge. Thus, Schumpeter viewed innovation as the primary source of economic growth and the main driver of business cycles.

Joseph Schumpeter Theorized That Business Cycles Were Determined Primarily by Long-Run