Which business cycle theory claims that increases and decreases in the pace of technological change will trigger a business cycle?
A) the monetarist cycle model
B) the Keynesian cycle model
C) the new Keynesian cycle model
D) the real business cycle model

Question

Quizplus · Accepted Answer

The real business cycle model suggests that changes in technology drive fluctuations in output and employment. Therefore, increases and decreases in the pace of technological change will trigger a business cycle. The monetarist cycle model focuses on changes in the money supply, the Keynesian cycle model emphasizes changes in aggregate demand, and the new Keynesian cycle model adds price and wage rigidities to the standard Keynesian model.

Which Business Cycle Theory Claims That Increases and Decreases in the Pace