Joseph believes that changes in the business cycle can be attributed to shifts in the vertical aggregate supply curve. These shifts are caused by faster or slower increases in economic productivity. Joseph is best described as supporting the _____ theory.
A) rational expectations
B) supply-side
C) real business cycle
D) new Keynesian

Question

Quizplus · Accepted Answer

Joseph's belief aligns with the real business cycle theory, which attributes fluctuations in the business cycle to changes in technology and productivity affecting the real economy, rather than to changes in aggregate demand.

Joseph Believes That Changes in the Business Cycle Can Be