The belief that fluctuations in the rate of growth of factor productivity cause the business cycle is:
A)new classicalism.
B)monetarism.
C)Keynesianism.
D)the real business cycle theory.

Question

Quizplus · Accepted Answer

The real business cycle theory proposes that fluctuations in the rate of growth of factor productivity are the main cause of the business cycle. This theory suggests that business cycles are the result of changes in technology and production processes, rather than monetary factors or policy interventions.

The Belief That Fluctuations in the Rate of Growth of Factor