Real business cycle theory is an extension of
A)Keynesian theory.
B)monetary theory.
C)new Keynesian theory.
D)new classical theory.

Question

Quizplus · Accepted Answer

Real business cycle theory is an extension of new classical theory, which focuses on the role of technology shocks and productivity in causing business cycles. It emphasizes the importance of supply-side factors rather than demand-side factors in explaining fluctuations in output and employment.

Real Business Cycle Theory Is an Extension of