Which of the following is not seen by economists as an underlying cause of business cycle ﬂuctuations?
A) unexpected ﬁnancial bubbles that eventually burst
B) shocks to the money supply by the nation's central bank
C) supply shocks caused by major innovations
D) All of these are identiﬁed as causes of business cycle changes.

Question

Quizplus · Accepted Answer

All the options listed (unexpected financial bubbles that eventually burst, shocks to the money supply by the nation's central bank, and supply shocks caused by major innovations) are recognized by economists as potential causes of business cycle fluctuations. These factors can lead to expansions or contractions in economic activity, thus affecting the business cycle.

Which of the Following Is Not Seen by Economists as an Underlying