_______ states that the main source of economic fluctuations is fluctuations in business confidence.
A)Monetarist cycle theory
B)Real business cycle theory
C)New classical cycle theory
D)Keynesian cycle theory
E)None of the above

Question

Quizplus · Accepted Answer

Keynesian cycle theory argues that fluctuations in business confidence, among other factors such as interest rates and government policies, can lead to economic fluctuations. Monetarist cycle theory focuses on fluctuations in the money supply, while real business cycle theory and new classical cycle theory emphasize the role of technology shocks and changes in labor supply in driving economic fluctuations.

_______ States That the Main Source of Economic Fluctuations Is