Compared to Keynesians,Real Business Cycle theorists
A) have greater optimism regarding markets
B) give a larger role to stabilization policy
C) believe technology plays a relatively minor role in short run fluctuations
D) are more likely to claim that individuals are unresponsive to price changes
E) are relatively unconcerned with productivity shocks

Question

Quizplus · Accepted Answer

Real Business Cycle theorists are often more optimistic about markets and believe that market forces are efficient at allocating resources. They view business cycles as being caused by shifts in productivity due to technological changes, which they believe are the main drivers of economic growth in the long run. They also believe that individuals are responsive to price changes and that stabilization policies are often ineffective.

Compared to Keynesians,Real Business Cycle Theorists