Which theory views fluctuations in productivity as the main source of business cycle fluctuations?
A) real business cycle theory
B) monetarist cycle theory
C) new classical cycle theory
D) Keynesian cycle theory

Question

Quizplus · Accepted Answer

Real business cycle theory holds that fluctuations in productivity, or the ability of the economy to produce goods and services, are the primary driver of business cycle fluctuations. This theory emphasizes the role of technological shocks and changes in the labor market in causing fluctuations in output and employment.

Which Theory Views Fluctuations in Productivity as the Main Source