Which of the following are business cycle theories that regard fluctuations in aggregate demand as the 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 and II
D) I only

Question

Quizplus · Accepted Answer

Both Keynesian and monetarist cycle theories regard fluctuations in aggregate demand as the factor creating business cycles. Real business cycle theory, on the other hand, emphasizes the role of technological shocks and changes in productivity in creating business cycles.

Which of the Following Are Business Cycle Theories That Regard