Because shifts in aggregate demand are not viewed as being particularly important to aggregate output fluctuations,they do not see much need for activist policy to eliminate high unemployment. "They" refers to proponents of
A)the natural rate hypothesis.
B)monetarism.
C)the Phillips curve model.
D)real business cycle theory.

Question

Quizplus · Accepted Answer

Real business cycle theory proponents believe that fluctuations in aggregate output are primarily due to real (supply-side) shocks rather than shifts in aggregate demand, and thus they see less need for activist policy to address unemployment.

Because Shifts in Aggregate Demand Are Not Viewed as Being