Which theory views fluctuations in productivity as the main source of business cycle fluctuations?
A) new classical cycle theory
B) monetarist cycle theory
C) Keynesian cycle theory
D) real business cycle theory

Question

Quizplus · Accepted Answer

Real business cycle theory views fluctuations in productivity as the main source of business cycle fluctuations, suggesting that changes in technology and other exogenous factors can cause fluctuations in output and employment. It posits that recessions and expansions are a result of changes in real economic variables, rather than just changes in monetary policy or aggregate demand as suggested by Keynesian and monetarist cycle theories.

Which Theory Views Fluctuations in Productivity as the Main Source