Which of the following are business cycle theories that regard fluctuations in aggregate demand as t factor creating business cycles?
I. Keynesian cycle theory
II. real business cycle theory
III. monetarist cycle theory
A) I and III
B) I, II and III
C) I only
D) I and II

Question

Quizplus · Accepted Answer

Keynesian cycle theory and monetarist cycle theory regard fluctuations in aggregate demand as the factor creating business cycles. Real business cycle theory, on the other hand, regards fluctuations in aggregate supply as the factor creating business cycles. Therefore, the correct option is A, which includes only Keynesian cycle theory and monetarist cycle theory.

Which of the Following Are Business Cycle Theories That Regard