The theory that real shocks to the economy are the primary cause of business cycles is
A)monetarism.
B)Keynesian theory.
C)real business cycle theory.
D)Hamiltonian theory.

Question

Quizplus · Accepted Answer

Real business cycle theory posits that fluctuations in productivity and technology are the main drivers of economic cycles, rather than changes in monetary or fiscal policy (as in Keynesian theory) or fluctuations in the money supply (as in monetarism). Hamiltonian theory is not a commonly recognized economic theory.

The Theory That Real Shocks to the Economy Are the Primary