Which of the following statements is true about causes of business cycle ﬂuctuations?
A) Economists all agree that supply shocks are the cause of most business cycle ﬂuctuations.
B) Economists all agree that productivity shocks are the cause of most business cycle changes.
C) Economists all agree that monetary changes are primarily responsible for business cycle ﬂuctuations.
D) There are a wide range of theories as to the underlying causes of business cycle movements.

Question

Quizplus · Accepted Answer

There is no consensus among economists about the primary cause of business cycle fluctuations. There are several theories that suggest various factors like changes in technological progress, monetary policy, government policies, and international events that can trigger business cycles. Therefore, option D is the correct answer.

Which of the Following Statements Is True About Causes of Business