According to which theory of the business cycle do changes in the quantity of money never play a role in helping to explain fluctuations in real variables?
A) Keynesian
B) monetarist
C) new Keynesian
D) real business cycle

Question

Quizplus · Accepted Answer

Real Business Cycle (RBC) theory posits that real (not monetary) shocks to the economy, such as changes in technology or productivity, are the primary cause of economic fluctuations. It typically ignores the role of money supply changes in explaining variations in real economic variables.

According to Which Theory of the Business Cycle Do Changes