________ states that the main source of economic fluctuations is fluctuations in business confidence.
A)Real business cycle theory
B)New classical cycle theory
C)Keynesian cycle theory
D)Monetarist cycle theory
E)None of the above

Question

Quizplus · Accepted Answer

Keynesian cycle theory argues that fluctuations in business confidence can cause fluctuations in investment and aggregate demand, which can result in fluctuations in employment and output levels. Real business cycle theory and New classical cycle theory focus more on technology shocks and changes in productivity as the main sources of economic fluctuations. Monetarist cycle theory emphasizes the role of monetary policy in causing fluctuations in the economy.

________ States That the Main Source of Economic Fluctuations Is