The ________ theory emphasizes that changing productivity and technology are the main reasons behind fluctuations in an economy.
A) real business cycle
B) Keynesian
C) Ricardian
D) monetary

Question

Quizplus · Accepted Answer

The real business cycle theory argues that fluctuations in an economy are primarily caused by changes in productivity and technology, rather than external factors like government policy or monetary changes. This theory suggests that business cycles are a necessary and efficient part of the economy's adjustment to changes in the real world, and that government intervention can often do more harm than good.

The ________ Theory Emphasizes That Changing Productivity and Technology Are