The idea that business fluctuations are primarily caused by factors affecting aggregate supply rather than aggregate demand is a central tenet of
A)efficiency wage theory.
B)real-business-cycle theory.
C)mainstream economics.
D)monetarism.

Question

Quizplus · Accepted Answer

Real-business-cycle theory emphasizes the role of supply-side factors, such as technological shocks and changes in government policy, in driving business fluctuations.

The Idea That Business Fluctuations Are Primarily Caused by Factors