Which theory views fluctuations in productivity as the main source of business cycle fluctuations?
A) real business cycle theory
B) Keynesian cycle theory
C) monetarist cycle theory
D) new classical cycle theory

Question

Quizplus · Accepted Answer

Real Business Cycle Theory posits that fluctuations in productivity, driven by technological changes, are the primary cause of economic cycles. This contrasts with other theories that might emphasize demand fluctuations, monetary policy, or other factors as the main drivers of economic cycles.

Which Theory Views Fluctuations in Productivity as the Main Source